Wendy’s (WEN) reported increased first-quarter revenue as the fast-food restaurant chain attempts to restore sales growth at U.S. locations after a challenging 2025.
The Dublin, Ohio-headquartered company’s revenue growth demonstrates advancement in its recovery initiatives following an 11.3% decline in U.S. same-store sales during the fourth quarter of 2025, representing the chain’s poorest 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 Friday’s mid-day trading session 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, representing the largest increase in nearly two years.
The brand’s difficulties underscore wider obstacles confronting fast-food operators as they vie for price-sensitive consumers amid ongoing inflationary pressures.
Detailed analysis
Interim CEO Ken Cook characterized 2026 as a “rebuilding year” for the company during recent investor discussions 2. The organization has already shuttered 28 restaurants during the fourth quarter and concluded 2025 with 5,969 U.S. establishments.
Wendy’s intends to close between 298 and 358 locations during the first half of 2026, accounting for 5% to 6% of its U.S. restaurant portfolio. These closures add to 240 U.S. locations that were shuttered in 2024 as part of the company’s comprehensive restructuring initiatives.
Turnaround strategy
The organization is executing its “Project Fresh” strategy, which encompasses closing underperforming restaurants, reinvesting in core menu innovation, and sharpening its value platform. 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 U.S. operations faced difficulties, international markets offered some compensation with systemwide sales increasing 8.1% to $2.1 billion for the complete year 2025. Nevertheless, international same-store sales declined 2% in the fourth quarter, suggesting global challenges for the brand.
The company anticipates global systemwide sales to remain unchanged this year following a 3.5% drop in 2025, indicating the recovery efforts may require time to build momentum.
Outlook
Wendy’s conveyed optimism that its U.S. turnaround initiatives and international expansion will help stabilize sales performance throughout 2026. The company is also scheduling new product introductions, including a new chicken sandwich, as part of its strategy to rebuild customer traffic.
Cook highlighted the company’s emphasis on “restoring relevance and rebuilding trust with customers through disciplined execution and marketing” as primary objectives for the upcoming 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.