Wendy’s U.S. same-store sales fell more than 11%. | Photo: Shutterstock.
Wendy’s domestic same-store sales plunged more than 11% in the fourth quarter, the company said on Friday, putting an unfortunate exclamation point on one of the toughest years in the chain’s history.
Wendy’s is in the midst of closing 5% to 6% of its restaurants, implying about 300 to 350 locations. It is also giving operators more flexibility on their breakfast hours to improve franchisee profitability.
For the full year, the company’s U.S. system sales fell 5.2% to $11.9 billion amid closures and weak same-store sales. International system sales, a massive focus for the fast-food chain in recent years, increased 8.1% in 2025 to $2.1 billion. But that business lost some steam late last year, too, with same-store sales down 2%.
Wendy’s stock, which had been down nearly 50% over the past year, fell more than 6% in premarket trading on Friday.
The chain’s performance came during a particularly difficult year for the fast-food industry, as lower-income and younger consumers frustrated by high prices cut back on their dining frequency. But Wendy’s fourth quarter contrasted with the results reported by rivals McDonald’s (U.S. same-store sales up 6.8%) and Burger King (up 2.6%).
Yet it was also the worst quarter in at least 20 years. Wendy’s has not seen sales fall that much in one quarter, even during the pandemic or the Great Recession.
Former CEO Kirk Tanner left the company in July to take a job with The Hershey Company just 18 months into his tenure. Wendy’s has yet to name a permanent replacement.
“Our fourth quarter performance was in line with our expectations, reflecting the challenges we anticipated,” Interim CEO Ken Cook said in a statement.
Wendy’s largely blamed its problem on a combination of tough comparisons, product decisions and marketing. The company delayed an improved line of chicken sandwiches into this year. It also frontloaded its marketing in early 2025, leaving the company with little marketing toward the end of the year.
Comparisons were difficult, as the chain compared itself to a strong quarter a year ago. But the chain’s same-store sales on a two-year basis have been deteriorating for three years.
Cook on the company’s earnings call Friday blamed the problem on the chain’s focus on quick marketing wins and not on building the brand over the long term. “We got away from what made Wendy’s great,” he said. “We focused too much on sales overnight versus the brand over time.”
On value, he said, “We swung the page too far towards limited-time price promotions instead of everyday value.” Wendy’s introduced a new Biggie Deals Menu starting at $4 in January as part of that everyday value strategy.
Executives also said that the company will give franchisees “more flexibility around operating hours” in the morning daypart to enable operators to allocate resources “toward the greatest potential for growth” across different times of the day. The flexibility is designed to improve franchisee profitability.
The “large majority of the system is going to stay in breakfast,” Cook said. “We’re not pulling out.”
But he called it “a common sense decision” that enables franchisees to focus hours on where it would have the greatest value for customers and franchisee profitability. “We continue to believe that breakfast is an important daypart for the U.S. system,” he said.
Wendy’s is taking numerous steps to turn the brand around, kicking off a plan last October called “Project Fresh.” The company has brought in former Taco Bell and Yum Brands CEO Greg Creed to consult on marketing.
Creed oversaw a segmentation study to help Wendy’s with marketing. The company now plans to target customers for whom Wendy’s quality positioning resonate the most.
The company has taken steps to improve operations at company restaurants, which outperformed the system by 310 basis points. Franchisees are starting to implement many of these changes.
Wendy’s is also investing in more field teams to help franchisees operate their restaurants.
The company also plans more innovation this year, starting with a new Cheesy Bacon Cheeseburger next week. Wendy’s also plans upgraded chicken sandwiches and a new Chicken Ranch Wrap.
UPDATE: This story has been updated to add information from Wendy’s earnings call.
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