Wendy’s wants to win customers back, 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 U.S. comp sales to growth. We are making meaningful progress on key actions to enhance 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.

Systemwide same-store sales dropped by 4.4%, and U.S. sales fell 4.7%, according to its Q3 earnings release.

The company plans to fix that by doubling down on value while closing hundreds of other underperforming stores.

Wendy’s has a plan

As part of addressing these operational and profitability challenges, Wendy’s has begun 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, I outlined three key initiatives: knowing our customers better, simplifying our programming and execution and working more closely with our franchisees as One Wendy’s,” Cook shared.

He also shared the company’s plan to close locations, although he did not say it directly.

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“In addition to these initiatives, we made the strategic decision to prioritize growing average unit volumes (AUV) over net unit growth in our U.S. business. As part of this strategic shift, we launched Project Fresh, a comprehensive turnaround plan to drive profitable growth and long-term value across our U.S. system,” he added.

The chain will grow its AUV by closing underperforming locations, which should drive customers from those stores to the remaining locations.

“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said.

Wendy’s has leaned into value meals.

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Discounts are part of Wendy’s plan

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 for $4 and $5 Biggie Bags, has seen deal prices rise to $6 and even $7.

In response, Wendy’s recently introduced a new line of Biggie Deals, designed to offer more options 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, 4pc. Nuggets, or Jr. Fry

    Choose a Second: 4pc. 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 Double Stack

    Jr. Fry

    Small Soft Drink

    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 give more ways to customize and enjoy great value,” said Wendy’s U.S. CMO Lindsay Radkoski in a press release.

Across the quick-service industry, chains including McDonald’s, Taco Bell, and Burger King are also leaning into value-focused menus and promotions, highlighting a wider shift toward affordability to attract cost-conscious consumers.

Related: Patriotic retail chain closes stores, begins liquidation

Analysts have mixed opinions on Wendy’s

“The plan to close hundreds of weak U.S. stores, stop low-return domestic builds, and put capital into remodels and premium positioning seems reasonable. However, where I’m cautious is how Wendy’s competes to gain share of a consumer who seeks more value at lower prices with a customer base that’s already price-sensitive,” according to Sandpiper Investment research.

Wendy’s faces significant challenges to its turnaround plan.

“The plan to close 200-350 underperforming U.S. restaurants directly addresses the near-term risk around weak franchise economics and store underperformance, but it does not fundamentally change the key catalyst, which is whether technology and menu innovation can support better sales productivity across the remaining base,” Simply Wall St. reported.

Wendy’s stock comes with its share of risks, Analyst Gary Alexander wrote on Seeking Alpha.

“Comp sales have deteriorated further as operating margins have also shrunk, leading me to believe that the company’s turnaround plan, ‘Project Fresh,’ may take longer to materialize into an actual recovery. With all of this in mind, I’m downgrading my viewpoint on Wendy’s to ‘Neutral,'” he wrote.

Wendy’s is operating in a challenging environment. Industry trends show that many restaurants are facing uneven sales performance.

“Forty-seven percent of restaurant operators said their same-store sales rose between November 2024 and November 2025, according to the National Restaurant Association’s monthly tracking survey. That was essentially unchanged from 48% in October. Forty-four percent of operators said their sales declined in November, up from 35% in October.”

November marked the tenth consecutive month in which more operators reported lower year‑over‑year customer traffic than higher traffic, underscoring ongoing challenges for chains trying to grow sales and guest counts, added the NRA.

As an occasional Wendy’s customer for more than 40 years, I’m seeing that the chain faces an identity challenge. It used to be the better 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 without a real reason to visit Wendy’s.

Related: Another major retail chain closes warehouse operations