Wendy’s announced Friday it will shutter between 298 and 358 underperforming U.S. locations as part of a broader turnaround effort following a sharp decline in sales.

The company reported that domestic same-store sales at restaurants open at least one year fell 11.3% in the fourth quarter, while global same-store sales dropped 10.1%, underperforming analyst expectations. Revenue declined 5.5% to $543 million, though that figure slightly exceeded projections.

Interim CEO and CFO Ken Cook said the closures, representing roughly 5% to 6% of Wendy’s U.S. footprint, will occur by mid-2026. The company ended 2025 with 5,969 domestic restaurants after closing 28 locations during the fourth quarter.

Executives tied the decision to “Project Fresh,” a restructuring plan introduced in October aimed at improving profitability and restoring brand momentum. Leadership conceded that the company miscalculated its pricing strategy during a period of sustained inflation.

“One learning from 2025 around value, we swung the pendulum too far toward limited-time price promotions instead of everyday value,” Cook said during the earnings call.

Rival McDonald’s has leaned heavily into value-focused offerings and reported a 6.8% increase in U.S. same-store sales during the same quarter, its strongest performance in roughly two years. Wendy’s responded in January by rolling out a permanent “Biggie Deals” value menu with $4, $6, and $8 price tiers.

Company leadership described 2026 as a rebuilding year, emphasizing disciplined marketing and efforts to win back inflation-weary consumers. While domestic sales have weakened, executives said international expansion has helped stabilize overall performance, with global systemwide sales projected to remain flat next year.

The closures underscore mounting pressure within the fast-food sector as customers remain price-sensitive amid elevated grocery and dining costs.