Wendy's 2026 Turnaround: Store Closures, Earnings Beat, and China Expansion Plan

Wendy’s Shares Rise on Strong Earnings Despite U.S. Sales Decline

Wendy’s shares climbed over 4% in morning trading on Friday after the fast-food giant reported quarterly earnings that exceeded analyst expectations. Despite a 7.8% decline in U.S. same-restaurant sales, the company’s adjusted earnings per share (EPS) of 12 cents surpassed the 10-cent forecast, while revenue reached $540.6 million, beating the estimated $520.48 million.

Turnaround Plan: 174 U.S. Stores Closed in Q1 2026

Wendy’s began its turnaround initiative in Q4 2025 with 5,979 U.S. restaurants. By the end of Q1 2026, the chain had 5,805 locations, reflecting a net loss of 174 stores during the period. Interim CEO Ken Cook previously announced plans to close 200–350 underperforming U.S. locations in 2026. Fast Company has sought confirmation from Wendy’s regarding the exact number of closures and a list of affected stores.

Key Turnaround Strategies

• Menu upgrades: Introduction of a new Biggie platform, premium hamburger improvements, and new chicken sandwich launches.
• Operational excellence: Focus on enhancing order accuracy and customer satisfaction metrics.
• International growth: Systemwide sales in international markets rose 6%, driven by expansion in key regions.

China Expansion: 1,000 New Wendy’s Restaurants Planned

As part of its long-term growth strategy, Wendy’s announced a new franchise agreement to open up to 1,000 restaurants across China over the next decade. Interim CEO Ken Cook emphasized the move as part of the company’s efforts to strengthen its foundation and regain momentum.

“We are in the early innings of our turnaround.”

— Ken Cook, Interim CEO of Wendy’s, during Friday’s earnings call

“These actions are strengthening our foundation and positioning Wendy’s to regain momentum and deliver sustainable growth and long-term value creation.”

— Ken Cook, Interim CEO of Wendy’s

Mixed Performance: U.S. Struggles vs. International Strength

While U.S. sales lagged, Wendy’s international business continued to show resilience, with systemwide sales up 6%. Cook attributed this growth to expansion in key markets, including China. The company remains confident in its turnaround strategy despite the challenges in the U.S. market.

Leadership Perspective

In a statement, Cook highlighted the company’s progress: “We are taking decisive action to strengthen the Wendy’s system and improve performance. While our first quarter results reflect a business in the early stages of a turnaround, we are making progress to improve our U.S. business and are confident in the direction we are heading.”

Market Reaction

Wendy’s shares rose over 4% in morning trading and were up approximately 2% by midday on Friday. The earnings beat and strategic updates appear to have bolstered investor confidence in the company’s turnaround efforts.