Wendy's intends to close roughly 5% to 6% of its US footprint this year.
Mike Campbell/NurPhoto via Getty Images
Several restaurant chains have shared plans to close locations in 2026.
Wendy's planned to close up to 350 US restaurants in the first six months of the year.
Pizza Hut said it would shutter 250 US locations in the first half of the year.
Some fast-food and fast-casual chains across the US are shrinking their footprints, with several planning to scale back locations in 2026.
Restaurant chains, including Wendy's, Papa John's, Pizza Hut, and Red Lobster, have announced plans to close locations in 2026.
The planned closures come amid a challenging few years for restaurant chains, driven by factors such as inflation, rising labor costs, and changing customer preferences. Some brands have leaned on value meals and innovations in an attempt to bring more customers in the door.
"What's really worked within quick service hasn't been value, as much," TD Cowen analyst Andrew Charles previously told Business Insider. "Value is important, but you look at when McDonald's, Burger King, etc, have done well — it's really when they have great menu innovation or great marketing that they really see customers respond."
Several restaurant chains have announced plans to close locations in 2026, while others have suddenly shuttered locations since the start of the year. Here's what to know.
In February, Wendy's revealed plans to close up to 350 US restaurants.
Sign for the fast food brand Wendys on 5th June 2025 in London, United Kingdom.
Mike Kemp/In Pictures via Getty Images
In February, Wendy's said it intended to close roughly 5% to 6% of its US footprint — about 298 to 358 restaurants — in the first half of the year as it grappled with sliding sales and profits.
At the time, then-Interim CEO Ken Cook said the brand's focus was "to strengthen our foundation and position Wendy's for long-term success."
The Associated Press reported that Wendy's shuttered 28 restaurants in the fourth quarter of 2025, leaving it with 5,969 locations across the US at the end of the year.
Company data shows systemwide US sales dropped 5.2% in 2025, while same-store sales declined 5.6% compared with the previous year.
In May, Wendy's announced that global systemwide sales totaled $3.2 billion in Q1, down 5.5% from the same period the previous year. In a statement at the time, Cook remained optimistic, citing Q1 improvements such as upgrading its hamburgers, launching new chicken sandwiches, and a "focus on operational excellence."
"While our first quarter results reflect a business in the early stages of a turnaround, we are making progress to improve our US business and are confident in the direction we are heading," he said.
Pizza Hut said it intended to shutter 250 US locations in the first half of the year.
Pizza Hut
Scott Olson/Getty Images
Pizza Hut, founded in 1958 by brothers Dan and Frank Carney in Wichita, Kansas, and best-known for its pan pizza, has more than 6,000 locations in the US.
In a February earnings call, its parent company, Yum! Brands, said Pizza Hut intended to shutter 250 US locations by July 1. The closures would impact "underperforming" locations, Yum! Brands said.
In April, Fortune reported it had identified around 50 locations that had closed, with most affected restaurants in California, Pennsylvania, and Ohio.
Yum! Brands said late last year that it was exploring a potential sale of the chain, after reporting a 1% decline in same-store sales during the third quarter, the eighth consecutive quarterly drop. Citing a source, Reuters reported in May that Yum! was in talks with LongRange Capital, a private-equity firm, about a potential sale.
"The Pizza Hut team has been working hard to address business and category challenges," Chris Turner, chief executive of Yum! Brands, said in November. "However, Pizza Hut's performance indicates the need to take additional action to help the brand realize its full value, which may be better executed outside Yum! Brands."
The chain has faced tough competition from other chains, especially with the rise of value meals. Internationally, it is faring better, with same-store sales increasing by 1% last year.
Jack in the Box reportedly plans to close up to 100 locations.
Here's a Jack in the Box logo displayed on a sign outside a restaurant on January 9, 2026, in San Diego, CA.
Kevin Carter/Getty Images
Jack in the Box — the fast-food chain that's been flipping burgers since 1951 — has built a following at its more than 2,100 locations with a menu that includes curly fries, tacos, chicken sandwiches, and milkshakes. But even this drive-thru staple has hit some bumps in the road.
In 2025, the company rolled out its "Jack on Track" turnaround plan to boost performance and strengthen its finances. Part of this was selling off Del Taco for $119 million, which was completed in December.
By the end of June, the brand expects 50 to 100 closures and around 20 openings, QSR Magazine reported in February.
Same-store sales across its restaurants dropped 6.7% in Q1 year over year, the company reported, according to QSR Magazine. Its fiscal second-quarter sales "did not meet expectations," Interim CEO Mark King said in May, with same-store sales falling 3.8% year over year and revenue declining 4.3% to $254.3 million.
But, King said, sales trends had improved entering the third quarter and that the company was committed to its turnaround plan.
"Jack in the Box is an iconic brand, and I'm eager to dive in with our passionate team and franchisees to further improve operating results. After being on the Board and now as interim CEO, my excitement for the potential of this brand has only grown," he said.
The brand's goal this year is to focus on innovation, customer service, cosmetic updates, and fewer, stronger limited-time offers, QSR reported.
Papa John's plans to close approximately 200 stores in 2026.
A Papa John's restaurant is seen on February 27, 2026 in Austin, Texas. Papa John's international is preparing to close 300 of its Northern American stores by the end of 2027 in an effort to further turnaround business amid nationwide ongoing pizza sector struggles.
Brandon Bell/Getty Images
Papa John's announced in a February earnings call that it plans to close about 200 North America restaurants in 2026 as part of a broader effort to shut down 300 underperforming locations by the end of 2027.
The closures will primarily affect franchise-owned stores that are more than 10 years old and do not indicate long-term profitability, Ravi Thanawala, Papa John's CFO, said on the call.
Papa John's reported a 3% decline in global systemwide sales in the first quarter. North America comparable sales declined 6.4%, though international comparable sales rose 3.6% for the sixth consecutive quarter of growth.
CEO Todd Penegor said, "We are taking action to better align corporate and field resources with our transformation priorities and optimize spans and layers in our organizations."
Papa John's was founded in 1984 by John Schnatter in Jeffersonville, Indiana, when he began selling pizzas out of a converted broom closet in his father's tavern. The brand quickly grew into one of the largest pizza chains in the world, known for its "Better Ingredients. Better Pizza." slogan.
Red Robin has abruptly closed some restaurants nationwide.
Here's a Red Robin restaurant in San Bruno, California.
Illustration by Justin Sullivan/Getty Images
Some Red Robin locations in Illinois, California, and New Jersey abruptly closed this year, The Independent reported.
The company, which has nearly 500 locations across the United States, said in February 2025 that it intended to shutter roughly 70 underperforming restaurants as part of a plan to pay down debt, USA Today reported.
Later in the year, executives shared during an earnings call that turnaround efforts at several locations had been more successful than expected, reducing the need for as many closures.
A Red Robin spokesperson told Business Insider in March that 20 closures in 2026 were mentioned on the company's Q4 earnings call; however, these are potential, not confirmed, closures. They concern corporate locations, rather than franchise-operated locations.
"As the company reported in its Q4 earnings, Red Robin beat the casual dining industry on traffic in December, a trend that continued into January," the spokesperson said, adding that there was "a lift in traffic, thanks to its new value menu, the Big YUMMM Deals starting at $9.99."
"This gives the company confidence as they look ahead and expect to continue that progress in 2026 as they introduce more guests to the new-and-improved Red Robin," the spokesperson said.
Red Robin was founded in 1969 in Seattle, Washington, when local restaurateur Gerry Kingen expanded and renamed a neighborhood tavern that had originally opened in the 1940s.
The company grew into a national casual-dining chain known for its gourmet burgers, its Bottomless Steak Fries, onion rings, and thick, hand-spun milkshakes.
Some Denny's have also closed without advance notice.
Denny's logo is seen in Austin, United States on October 21, 2025.
Jakub Porzycki/NurPhoto via Getty Images
Denny's, which operates more than 1,650 locations globally and is recognized for comfort-food staples, confirmed in January that it had completed its plan to close 150 restaurants by the end of 2025.
Since the start of 2026, there have been reports of restaurants closing without advance notice, including locations in Grand Rapids and Kalamazoo, Michigan, as well as Midland, Texas, per Mashed.
Denny's did not respond to Business Insider's request for comment on the recent closures. It has not been said if there will be others this year.
It comes amid broader corporate shifts at the company. In January, a $620 million acquisition by TriArtisan Capital, Yadav Enterprises, and Treville Capital was completed. The company reported that CEO Kelli Valade would leave in February.
Denny's was founded in 1953 in Lakewood, California, by Harold Butler and Richard Jezak, originally operating under the name Danny's Donuts before evolving into a full-service coffee shop and eventually rebranding as Denny's.
Noodles & Company expects to close between 30 and 35 locations in 2026.
Clackamas, OR, USA - May 22, 2021: A Noodles and Company restaurant in Clackamas, Oregon. Noodles and Company is an American fast-casual restaurant based in Broomfield, Colorado.
Tada Images/Shutterstock
Fast Company reported Noodles & Company plans to shutter more restaurants as part of a broader effort to shore up its finances.
In a January announcement, the fast-casual chain said it expects to close between 30 and 35 locations in 2026 to improve profitability and strengthen its overall performance.
By the end of 2025, the brand operated 340 company-owned restaurants and 83 franchised locations. The company had already downsized its footprint the previous year, closing 42 restaurants, including 33 corporate locations and nine franchise units.
"Decisions like this are made thoughtfully and with a long-term view of the business," CEO and President Joe Christina said, adding that fourth-quarter results showed stronger performance when resources were focused on higher-opportunity restaurants. He said the moves are designed to bolster the brand's financial position and support long-term, profitable growth.
Noodles & Company was founded in 1995 by Aaron Kennedy in Denver, Colorado. The chain is known for its diverse menu that spans flavors from around the world, including Wisconsin Mac & Cheese, Pad Thai, Japanese Pan Noodles, and Pasta Fresca. In addition to noodle bowls, the restaurant offers soups, salads, and shareable sides, positioning itself as a quick-service spot for comfort food with an international twist.
Red Lobster is closing its Times Square flagship location, among others, in 2026.
Richard Levine/Corbis via Getty Images
Since filing for bankruptcy in 2024 — and closing dozens of restaurants that year — Red Lobster has begun a turnaround: It's appointed a new CEO, updated its menu, collaborated with celebrities, and exited Chapter 11 protection. The new CEO, Damola Adamolekun, told The Wall Street Journal in February that its sales were up 10% year over year.
Still, the company announced this week that it will shutter its flagship Times Square location on June 14, ending a 23-year run in one of the world's busiest tourist destinations.
A spokesperson for Red Lobster told Business Insider the chain "remains focused on strengthening the business, investing in the guest experience, and building momentum across the system."
It cited "extensive and prolonged construction" at the sprawling location, which affected foot traffic and sales.
"Times Square has been an important chapter in Red Lobster's history, and we are grateful to the team members and guests who have made this restaurant special over the years," the chain said.
In May, the brand closed its oldest continuously operating location, in Tallahassee, Florida, after 56 years, following typical performance and lease reviews, the company said. Other closures have included restaurants in Chambersburg, Pennsylvania, and Overland Park, Kansas.
Red Lobster operates around 550 restaurants, a decline from around 700 a few years ago, Fortune reported. Adamolekun told The Wall Street Journal that Red Lobster is still looking closely at leases, with a view to close or update underperforming locations. He added that the chain is also open to opening more locations in some underrepresented regions.
Founded in 1968, Red Lobster grew into one of the largest casual dining seafood chains in the United States. The company is best known for its seafood-focused menu, including shrimp, lobster, and crab dishes, as well as its signature Cheddar Bay Biscuits, which have become a staple of the brand.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.