Wendy’s wants to win back customers, but it knows it has a lot of work to do.
The chain has struggled in its home market, interim CEO Ken Cook acknowledged during Wendy’s third-quarter earnings call.
“In our U.S. business, sales remain under pressure and we are acting with urgency to return to growth in U.S. comp sales. We are making significant progress on key actions to improve 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.
System-wide same-store sales fell 4.4 percent and U.S. sales fell 4.7 percent, according to its Q3 earnings release.
The company plans to fix this by doubling down on value while closing hundreds of other underperforming stores.
As part of addressing these operational and profitability challenges, Wendy’s began closing underperforming U.S. locations to focus resources on its stronger restaurants and support the broader Project Fresh turnaround plan.
“On our last earnings call, we outlined three key initiatives: getting to know our customers better, streamlining our programming and execution, and working more closely with our franchisees as One Wendy’s,” Cook said.
He also shared the company’s plan to close locations, though he didn’t say so directly.
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“In addition to these initiatives, we made the strategic decision to prioritize growing average unit volumes (AUVs) 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 allow franchisees to invest more capital and resources in the remaining restaurants,” Cook said.
Wendy’s has focused on value meals.Shutterstock” loading=”eager” height=”540″ width=”960″ class=”yf-lglytj loader”/>
Wendy’s has focused on value meals.Shutterstock ·Shutterstock
Wendy’s customers have noticed that its classic discounts and meal deals have become more expensive over time. The chain, once known for its $4 and $5 Biggie Bags, has seen prices on deals rise to $6 and even $7.
In response, Wendy’s recently introduced a new line of Biggie Deals designed to provide more choice 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, 4 pcs. Nuggets or Jr. Fry Choose a second: 4 pcs. Nuggets, Jr. Fry or small soft drink
$6 Biggie Bag: Choose one: Crispy Chicken Sandwich, Jr. Cheeseburger, Jr. Bacon Cheeseburger or Double Stack 4pc. Nuggets Jr. Fry Small Soft Drink
$8 Biggie Bundle: Choose two: Crispy Chicken Sandwich, Jr. Cheeseburger, Jr. Bacon Cheeseburger or Small Soft Drink Jr. Double Stack Fries Source: Wendy’s
“We know customers want choice and a meal option made just for them. That’s why we’re expanding Biggie Deals — to offer 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 such as McDonald’s, Taco Bell and Burger King are also moving toward value-focused menus and promotions, highlighting a broader shift toward affordability to appeal to cost-conscious consumers.
“The plan to close hundreds of underperforming U.S. stores, halt low-margin internal construction and invest capital in remodeling and premium positioning seems reasonable. What I am wary of, however, is how Wendy’s is competing to win share of a consumer looking for more value at lower prices with a customer base that is already price-sensitive,” according to research by Sandpiper Investment.
Wendy’s faces significant challenges to its turnaround plan.
“The plan to close 200-350 underperforming U.S. restaurants directly addresses near-term risk from weak franchise economics and poor store performance, but does not fundamentally change the key catalyst, which is whether technology and menu innovation can support better sales productivity in the remaining base,” Simply Wall St. reported.
Wendy’s stock comes with its share of risks, analyst Gary Alexander wrote for Seeking Alpha.
“Sales have deteriorated further as operating margins have shrunk, leading me to believe that the company’s turnaround plan, ‘Project Fresh’, may take longer to materialize into a real turnaround.” With all this in mind, I’m downgrading my view on Wendy’s to ‘Neutral,’ he wrote.
Wendy’s operates in a challenging environment. Industry trends show that many restaurants are experiencing uneven sales performance.
“Forty-seven percent of restaurant operators said their same-store sales increased between November 2024 and November 2025, according to the National Restaurant Association’s monthly tracking survey. That was basically unchanged from 48 percent in October. Forty-four percent of operators said their sales decreased in November, up from 35 percent in October.”
November marked the 10th consecutive month in which more operators reported lower customer traffic year-over-year than higher traffic, underscoring ongoing challenges for chains trying to increase sales and guest numbers, the NRA added.
As a casual Wendy’s customer for more than 40 years, I can see that the chain is facing an identity challenge. It was the best 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 with no 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 favorite source by clicking here.
