Chain restaurants closing hundreds of US locations in 2026

Several fast-food and fast-casual chains across the US are shrinking their footprints in 2026, pointing to inflation, rising labor costs, and shifting customer preferences as key challenges. Brands have tried value meals, menu innovation, and operational changes to draw customers back.

Wendy's announced plans in February to close roughly 5% to 6% of its US restaurants — about 298 to 358 locations — in the first half of the year after sliding sales and profits. Company data showed systemwide US sales fell 5.2% in 2025 and same-store sales declined 5.6%, while global systemwide sales totaled $3.2 billion in Q1, down 5.5% year over year; the chain is pursuing menu upgrades and operational improvements as part of a turnaround effort.

Pizza Hut's parent said it intends to shutter 250 US locations by July 1, targeting underperforming restaurants, and some closures have already been identified, particularly in California, Pennsylvania, and Ohio.

United States, California, Pennsylvania, Ohio

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