Wendy's, a 57-year-old burger chain, has closed 28 restaurants and may shut down hundreds more as part of a turnaround strategy to address declining traffic and sales. Facing six consecutive quarters of declines, the company aims to revamp its menu and improve customer satisfaction, currently rated 77/100 on the ACSI. CEO Bob Wright emphasizes operational excellence and digital experiences as key areas for improvement. While closures may continue, the focus is on selecting underperforming locations and strengthening the brand rather than simply reducing the number of restaurants. Wendy's also anticipates ongoing financial pressures and has withdrawn its 2026 financial outlook to reassess its strategies.

57-year-old Burger chain closed 28 restaurants, 100s more coming

Shutting down locations has not stopped the financial bleeding, and more locations than planned may close.

Aug 8, 2026 1:08 PM EDT

By Fernanda Tronco

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After announcing plans to close hundreds of underperforming locations in the first half of 2026, a fast-food burger chain has revealed major changes across its business, including the possibility of additional restaurant closures, as it works to reverse ongoing declines in traffic and sales.

The company has also acknowledged that its focus on cost and efficiency has, in some cases, weakened the brand’s differentiation, a challenge it now faces as competition in the restaurant industry grows.

The chain is also facing challenges with customer satisfaction. Wendy’s scored 77 out of 100 in the American Customer Satisfaction Index (ACSI), placing it below several major fast-food rivals in the 2026 rankings.

Wendy’s new strategy to boost growth

Wendy’s ( WEN) is taking action after reporting its sixth consecutive quarter of declines, launching a major turnaround plan and updating its capital allocation strategy to provide the flexibility needed to support that effort.

“Today we are clearly not performing at our potential,” said Wendy’s President and CEO Bob Wright in the company’s second-quarter fiscal 2026 earnings release. “I returned to Wendy’s because I believe we can fix our issues and I am excited to work with our team and our franchisees to drive a strong turnaround.”

The company says it has implemented measures across five areas it has identified as critical to the turnaround: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth.

“We’ve already started looking at necessary restructuring and reorganization efforts, and I look forward to sharing more details with you as they develop,” said Wright. “I’ll be closely engaged in key decisions across the organization and ensure we are moving with focus, speed, and accountability.”

The need for a turnaround comes as Wendy’s continues to face pressure on restaurant traffic and sales. During the second quarter of fiscal 2026, the company reported:

Global systemwide sales declined 6.5% year-over-year
U.S. systemwide sales fell 8.2%
U.S. same-restaurant sales decreased 7%

Wendy’s may close more restaurants

The turnaround effort follows Wendy’s announcement that it had already shuttered 28 locations during its fourth-quarter fiscal 2025 earnings call and expected to close between 5% and 6% of its U.S. restaurants, or roughly 289 to 358 underperforming units, during the first half of 2026.

Additional closures could follow.

During the company’s second-quarter earnings call, Wright indicated that Wendy’s could close individual restaurants when doing so would improve the financial health of a franchisee’s overall portfolio.

“If we need to use closures of a few restaurants here and there to make a portfolio a little bit healthier and help that franchisee get to the right place,” said Wright. “At the end of the day, nothing cures financial health in a restaurant system like top-line growth.”

Here’s some of my previous coverage of restaurant closures:

Wright added that although additional closures may occur, the company will work with franchisees to help restore their portfolios to health, rather than pursue closures simply to reduce the brand’s size.

“If the trade area’s moved on and it is a financial drag on that portfolio, then we’re going to support the closing of that location for the health of the system,” said Wright.

That distinction is important as Wendy’s attempts to improve its performance. The company’s strategy is not solely focused on shrinking its restaurant footprint.

Instead, management says closures may be used selectively when individual locations are no longer financially viable, while the broader turnaround focuses on bringing customers back through menu improvements, value, marketing, operations, and digital initiatives.

Wendy’s may close more locations in 2026.NurPhoto / Getty Images

What this means for the future of Wendy’s

Wendy’s expects traffic headwinds to continue affecting its ability to return to year-over-year systemwide sales growth in either the third or fourth quarter.

The company also predicts continued pressure on company-operated restaurant margins and adjusted EBITDA in the second half of the year because of sales deleverage.

As a result, Wendy’s is withdrawing its 2026 financial outlook to allow the new leadership team to fully assess business opportunities and formulate a comprehensive turnaround plan, including the optimal deployment of capital.

For consumers, the turnaround could bring changes to Wendy’s menu, value offerings, restaurant operations, and digital experience as the company works to increase traffic. For franchisees, the strategy could also result in additional closures in markets where individual restaurants are no longer financially viable.

Wendy’s hired former Potbelly executive Steve Cirulis as the company’s new CFO and Chief Strategy Officer in June 2026. Cirulis previously worked alongside Wright, who led the sandwich chain through a brand turnaround before becoming Wendy’s CEO in May 2026.

“As we move forward, our priorities will be maintaining financial discipline, making thoughtful investment choices, and supporting the actions needed to improve performance across the system,” said Cirulis during the earnings call.

For Wendy’s, the next phase will depend on whether its new strategy can reverse the company’s sales and traffic declines while improving the financial health of its restaurant system. Until then, additional closures remain one of the options management may use as it evaluates the chain’s underperforming locations.

About the author

Fernanda Tronco

Fernanda combines her previous experience and love for fashion to provide her audience with insights into the retail industry's biggest companies, including Macy's, Nordstrom, and Nike, as well as fashion houses like LVMH and Kering.

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57-year-old Burger chain closed 28 restaurants, 100s more coming

57-year-old Burger chain closed 28 restaurants, 100s more coming

Wendy’s new strategy to boost growth

Wendy’s may close more restaurants

What this means for the future of Wendy’s

About the author

Fernanda Tronco

Comments

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