Wendy's, the major burger chain founded in 1969 with over 7,300 locations worldwide and approximately 225,000 employees, is planning to close around 300 underperforming U.S. stores in 2026. This decision results from declining foot traffic, with U.S. same-restaurant sales dropping by 4.7% in Q3 2025, and a significant decrease in customer visits, especially in September with a 9.9% decline. The closures are part of a broader strategic review aimed at improving profitability and efficiency. Wendy's faces increased pressure from inflation, which has caused food and labor costs to rise sharply—food costs increased by 4.1% in 2024, and labor costs saw a 1% to 14% increase. Meanwhile, competitors like Chili's are gaining ground by offering aggressive value deals, such as the '3 for Me' promotion, which directly challenges Wendy's pricing and quality positioning. In contrast, Chili's experienced a 15.4% increase in foot traffic in Q3 2025. Wendy's CEO indicated that closing underperforming stores would help boost same-store sales and overall profits. The closures will begin in the fourth quarter of 2025 and continue into 2026. Additionally, Wendy's gained media attention after mocking Katy Perry's space flight in April, which Perry's manager publicly celebrated after Wendy's announced the store closures, highlighting ongoing public and media interest in the brand's strategic moves.