Wendy's is closing hundreds of U.S. locations in 2026, confirming earlier warnings about underperforming restaurants. The fast-food chain shuttered 28 restaurants in Q4 2025 and expects to close 5-6% of its locations—approximately 298 to 358 stores—in the first half of this year alone.

This strategic move follows a challenging 2025 when Wendy's stock lost nearly 50% of its value. Interim CEO Ken Cook stated that closures of underperforming units would boost sales and profitability at nearby locations. The company's Project Fresh turnaround plan aims to revitalize the brand through menu innovation and improved operations.

Wendy's isn't new to closures—last year the chain announced plans to close 140 locations while opening 250 to 300 new restaurants. The company's recent launch of Tendy's, its entry into the chicken sandwich wars, represents part of its broader strategy to reposition itself against competitors like McDonald's and Taco Bell.