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Wendy’s is confronting one of the most challenging periods in its recent history as slowing sales force the company to rethink its U.S. footprint. Reports of hundreds of restaurant closures and thousands of jobs at risk have drawn national attention, raising questions about how deep the downturn runs. While viral headlines suggest a dramatic collapse, company filings and earnings data point to a grinding slowdown rather than an abrupt shutdown.
The Revenue Drop Behind the Headlines
Wendy’s reported that revenue over the trailing twelve months held around $2.21 billion, with growth flat to slightly negative. Analysts note that this represents a meaningful slowdown, even if it falls far short of the widely circulated claim of a $300 million collapse. The company’s net income fell about 6% year over year, signaling real pressure on profitability.
Hundreds of Closures Are Planned
Wendy’s confirmed plans to close hundreds of U.S. restaurants in 2026 as part of a restructuring effort. Interim CEO Ken Cook said a “mid-single-digit percentage” of the company’s more than 6,000 U.S. locations will shut down, which analysts estimate could mean roughly 240 to 300 stores nationwide. The closures are targeted at underperforming units rather than entire regions.
Why 8,000 Jobs Are at Risk
The projected job impact comes from the scale of the closures rather than mass layoffs at corporate offices. With each restaurant employing dozens of workers, shuttering hundreds of locations could affect up to 8,000 employees across the country. Wendy’s has not released a final figure, but the estimate aligns with typical staffing levels at affected stores.
Fewer Visits Are Driving the Decline
Executives say the core issue is falling customer traffic. U.S. same-store sales dropped 4.7% in the most recent quarter, even as spending per order rose slightly. The decline reflects fewer visits rather than collapsing demand for the brand itself.
Consumers Are Cutting Back
Industry analysts link Wendy’s struggles to broader shifts in consumer behavior. Higher food prices, rent, and housing costs have pushed many households to reduce discretionary spending, with restaurant visits often the first expense to go. Lower-income consumers, a key demographic for quick-service chains, have pulled back the most.
Project Fresh Becomes the Turnaround Plan
In response, Wendy’s launched a strategic overhaul called Project Fresh. The plan focuses on brand revitalization, operational efficiency, system optimization, and more disciplined capital allocation. Company leaders say the initiative is designed to stabilize sales and improve profitability over multiple years rather than deliver quick fixes.
Closing Stores to Strengthen the System
Project Fresh ties directly to the decision to close weaker restaurants. Wendy’s says trimming underperforming locations will allow it to invest more heavily in stronger stores, digital upgrades, and drive-thru efficiency. The goal is a leaner network that can perform better in a slower-growth environment.
Investors Watch for Signs of Recovery
Markets have responded cautiously as Wendy’s shares trade near multi-year lows. Investors appear to be waiting for evidence that Project Fresh can lift margins and stabilize traffic. Until then, the company remains under close scrutiny from analysts and shareholders.
What Comes Next for Wendy’s
For customers, most Wendy’s locations will remain open, and the brand continues to operate thousands of restaurants nationwide. For workers and communities facing closures, the impact is immediate and personal. As Wendy’s moves through 2026, the success of its turnaround will likely determine whether the closures mark a painful reset or the start of a longer decline.