Wendy’s (WEN) reported increased first-quarter revenue as the fast-food operator continues efforts to revive sales growth at domestic locations after a challenging 2025.
The Dublin, Ohio-based restaurant chain’s revenue gains indicate advancement in recovery initiatives following an 11.3% decline in U.S. same-store sales during the fourth quarter of 2025, representing the company’s weakest showing since 2007.
Key Takeaways
- Wendy’s Q1 revenue increased despite ongoing U.S. challenges
- Company closing 300-350 underperforming U.S. locations in 2026
- New value menu strategy aims to win back customers
Market reaction & context
Shares of Wendy’s climbed approximately 5% during mid-day trading Friday after the revenue disclosure 1. This performance stands in stark contrast to McDonald’s, which delivered U.S. same-store sales expansion of 6.8% in the fourth quarter, marking its strongest growth in nearly two years.
The restaurant chain’s difficulties underscore wider challenges confronting fast-food companies as they vie for budget-minded consumers while navigating ongoing inflationary pressures.
Detailed analysis
Interim CEO Ken Cook characterized 2026 as a “rebuilding year” for the franchise during recent investor discussions 2. The organization had already shuttered 28 restaurants during the fourth quarter and concluded 2025 operating 5,969 U.S. locations.
Wendy’s intends to close between 298 and 358 locations during the first half of 2026, accounting for 5% to 6% of its domestic restaurant portfolio. These shutdowns follow 240 U.S. locations that closed in 2024 as part of the company’s comprehensive restructuring initiative.
Turnaround strategy
The organization is executing its “Project Fresh” approach, encompassing the closure of underperforming locations, reinvestment in core menu development, and enhancement of its value proposition. In January, Wendy’s launched a permanent “Biggie Deals” value menu featuring three pricing levels: $4 Biggie Bites, $6 Biggie Bags and an $8 Biggie Bundle.
“One learning from 2025 around value, we swung the pendulum too far towards limited-time price promotions instead of everyday value,” Cook said in a conference call with investors 3.
International performance
Although domestic operations faced headwinds, international markets delivered partial compensation with systemwide sales advancing 8.1% to $2.1 billion for the complete year 2025. Nevertheless, international same-store sales declined 2% in the fourth quarter, reflecting worldwide challenges for the brand.
The company anticipates global systemwide sales will remain unchanged this year following a 3.5% drop in 2025, suggesting recovery efforts may require time to build momentum.
Outlook
Wendy’s conveyed optimism that its domestic turnaround initiatives and international expansion will help stabilize sales results throughout 2026. The company is also preparing new product introductions, including a new chicken sandwich, as part of its campaign to restore customer visits.
Cook highlighted the company’s commitment to “restoring relevance and rebuilding trust with customers through disciplined execution and marketing” as central objectives for the coming year.
Not investment advice. For informational purposes only.
References
1Dee-Ann Durbin (February 13, 2026). “Wendy’s closes US restaurants and focuses on value to turn around falling sales”. KENS 5. Retrieved May 8, 2026.
2Matthew Kazin (February 16, 2026). “Wendy’s to close hundreds of restaurants as company looks to focus on value to boost sales”. Fox Business. Retrieved May 8, 2026.
3Ben Coley (February 13, 2026). “Wendy’s Resets with New Strategy Amid Declining Sales”. LinkedIn. Retrieved May 8, 2026.