Wendy’s Pulls Back After 4.7% Sales Decline, Blames Fast-Food Price Wars for Weak Traffic

Wendy’s is shaking things up to keep its business strong in a tough fast-food market. The company announced plans to close between 200 and 350 underperforming restaurants across the U.S. over the next two years. It’s a big move for the chain, which hopes that by cutting weaker spots, it can focus more time and money on restaurants that are thriving.

Interim CEO and CFO Ken Cook shared the news during Friday’s earnings call. He explained that the closures will begin this year and continue through 2026. “These actions will strengthen our system and allow franchisees to reinvest in their best-performing restaurants,” Cook said. In other words, Wendy’s wants to make sure its franchise owners are putting their money where it matters most… into locations that actually boost the brand.

This decision didn’t come out of nowhere. Wendy’s recently reported a 4.7% decline in U.S. same-store sales for the third quarter, showing signs that its domestic business has been under pressure. Meanwhile, rivals McDonald’s, Burger King, and Shake Shack all saw growth during the same period, thanks to aggressive value deals, loyalty programs, and new menu campaigns that drew in budget-conscious customers.

Despite the slowdown at home, Wendy’s results still came in stronger than a lot of analysts had penciled in. The company posted $44.3 million in profit and $549.5 million in revenue, both topping analyst predictions. Earnings per share came in at 24 cents, compared with the 20 cents analysts had expected. That small beat was enough to reassure investors… Wendy’s stock rose about 2% in midday trading on Friday, after jumping more than 11% before markets opened.

Cook also pointed to signs of strength outside the U.S. Wendy’s international operations continue to grow quickly, with net unit growth expected to exceed 9% in 2025. The company is seeing strong results from markets in Latin America, Asia, and Europe, where the Wendy’s brand still has plenty of room to expand.

Back at home, Wendy’s is also leaning on menu innovation to spark excitement. The company’s newest product, “Tendys” chicken tenders, has been a surprise hit. Demand was so strong that some restaurants sold out before the ads even aired. Cook said it’s “an encouraging first step” as Wendy’s works to reestablish its place as a leader in chicken menu items… a category that’s become increasingly competitive.

This isn’t the first time Wendy’s has axed its store count. The company closed 140 older restaurants in 2024, calling them outdated and underperforming. The next wave of closures, Cook explained, is about simplifying the business, upgrading technology, and giving franchisees the tools they need to succeed in a changing market. Investors seem on board… Wendy’s shares are up roughly 1.59% today after the news sank in.

At the time of publishing this article, Stocks.News holds positions in McDonald’s as mentioned in the article.