Wendy’s wants to win back customers, but it knows it has more work to do.
The chain has struggled in its home market, interim CEO Ken Cook acknowledged on Wendy’s third-quarter earnings call.
“In our U.S. business, sales remain under pressure, and we are working quickly to return U.S. comp sales to growth. We are making meaningful progress on key actions to enhance the customer experience, and we are seeing this pay off in our U.S. company-operated restaurants, which significantly outperformed the overall system in the third quarter,” he said.
Systemwide same-store sales fell 4.4%, and US sales fell 4.7%, according to its Q3 earnings release.
The company plans to fix this by doubling down on prices while closing hundreds of other poorly performing stores.
As part of addressing these operational and profitability challenges, Wendy’s has begun closing underperforming U.S. locations to focus resources on its strongest restaurants and support a broader Project Fresh turnaround plan.
“In our last earnings call, I outlined three key initiatives: getting to know our customers better, simplifying our programming and execution and working more closely with our franchisees as One Wendy’s,” shared Cook.
He also shared the company’s plans to close locations, though he didn’t say so directly.
More restaurants
“In addition to these initiatives, we made a strategic decision to prioritize growing average unit volume (AUV) over net unit growth in our US business. As part of this strategic shift, we launched Project Fresh, a comprehensive turnaround plan to drive profitable growth and long-term value in our US system,” he added.
The chain will increase its AUV by closing underperforming locations, which should drive customers from those stores to the remaining locations.
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said.
Wendy’s leans into value foods.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Wendy’s is leaning toward value dining.Shutterstock ·Shutterstock
Wendy’s customers have noticed that its classic discounts and meal deals have gotten more expensive over time. The chain, which was once known for its 4 for $4 and $5 Biggie Bags, has seen the deals rise to $6 and $7.
In response, Wendy’s recently introduced a new line of Biggie Deals, designed to offer more options and value for cost-conscious diners.
The new Biggie Deals menu includes the following.
$4 Biggie Bites: Choose one: Crispy Chicken Sandwich, Jr. Cheeseburger, Jr. Bacon Cheeseburger, 4pc. Choose nuggets, or junior fries seconds: 4pc. Nuggets, junior fries, or a small soft drink
$6 Large Bag: Choose from: Crispy Chicken Sandwich, Junior Cheeseburger, Junior Bacon Cheeseburger, or Double Stack 4pc. Nuggets Jr. Fry Small Soft Drink
“We know customers make choices and food choices just for them. That’s why we’re expanding Biggie Deals — giving you more ways to customize and enjoy great value,” Wendy’s US CMO Lindsay Radkoski said in a press release.
In the quick-service industry, chains including McDonald’s, Taco Bell, and Burger King are also leaning toward value-focused menus and promotions, highlighting a broader shift toward affordability to attract cost-conscious consumers.
“The plan to close hundreds of underperforming U.S. stores, halt low-return domestic manufacturing, and remodel and capitalize on premium positions seems reasonable. However, I am concerned about how Wendy’s will compete with an already price-sensitive customer base to gain share of consumers seeking more value at lower prices,” according to Sandpiper Investment research.
Wendy faces significant challenges in her turnaround plan.
“The plan to close 200-350 underperforming U.S. restaurants directly addresses the near-term risks of weak franchise economics and store underperformance, but it does not fundamentally change the key driver, which is whether technology and menu innovation can support better sales productivity at the rest of the base,” Simply Wall St. reported.
Wendy’s stock comes with its share of risk, analyst Gary Alexander wrote at Seeking Alpha.
“The comp’s sales have weakened further as operating margins have also contracted, leading us to believe that the company’s turnaround plan, ‘Project Fresh,’ may take a long time to translate into a real recovery. With all of this in mind, I am downgrading my outlook on Wendy’s to ‘Neutral,'” he wrote.
Wendy’s is operating in a challenging environment. Industry trends show that many restaurants are experiencing uneven sales performance.
“According to the National Restaurant Association’s monthly tracking survey, 47 percent of restaurant operators said their same-store sales increased between November 2024 and November 2025. That was essentially unchanged from 48% in October. 44 percent of operators said their sales decreased in November, up from 35% in October.”
November marked the tenth consecutive month in which many operators reported lower year-over-year customer traffic than higher traffic, underscoring ongoing challenges for chains trying to increase sales and guest numbers, the NRA added.
As an occasional Wendy’s customer for more than 40 years, I see the chain facing an identity challenge. It used to be a good burger alternative to McDonald’s and Burger King, but that mantle has been stolen by Shake Shack, Five Guys and a handful of other chains, leaving customers without a real reason to visit Wendy’s.
Related: Another major retail chain closes warehouse operations
This story was originally published by TheStreet on January 27, 2026, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.
