00:00Big-name chain restaurants from Wendy's to Pizza Hut are shutting down hundreds of locations in 2026.
00:06After a tough stretch for the industry, some of the most recognizable fast food and casual dining brands are shrinking
00:13their U.S. footprints.
00:14Wendy's says it plans to close 5% to 6% of its U.S. restaurants in the first half
00:20of the year, roughly 300 to 350 locations.
00:23The company reported U.S. system-wide sales fell 5.2% in 2025, with same-store sales down 5
00:31.6% year-over-year.
00:34Pizza Hut is planning to close 250 U.S. locations as its parent company, Yum! Brands, cut underperforming stores.
00:42The chain has posted eight straight quarters of declining same-store sales in the U.S.
00:47Papa John's plans to close about 200 restaurants in 2026, part of a broader plan to shut down 300 underperforming
00:55locations by 2027.
00:58And Jack in the Box expects between 50 and 100 closures by mid-year after same-store sales dropped 6
01:04.7% in the first quarter.
01:07Other chains, including Red Robin, Denny's, and Noodles & Company, have also closed or announced closures as they work on
01:14to improve profitability.
01:15The backdrop? Inflation, rising labor costs, and changing customer preferences.
01:21Analyst Andrew Charles told Business Insider that when quick service chains do well, it's often tied to great menu innovation
01:28or great marketing, not just value.
01:31Some brands are betting on innovation and restructuring to win customers back.
01:36Others are closing underperforming stores to stabilize and reset for long-term growth.
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