Longtime fast-food staple with two city restaurants part of nationwide downsizing effort
Another familiar fast-food name is disappearing from the local dining scene. Soon there will be no more Frostys on a hot afternoon, no more quick stops for Biggie fries, and no more visits beneath the iconic red-haired mascot sign that has greeted customers for decades. A longtime fast-food staple with two locations in Folsom is now reported to be part of a nationwide downsizing effort by The Wendy’s Company, and the closures will eliminate the brand’s presence in the city.
Staff at the local restaurants has confirmed that the Folsom locations at 1101 Riley Street and 2505 Iron Point Road are expected to shutter prior to mid-March. When those restaurants close, the move will mark the end of Wendy’s in Folsom after years serving burgers, fries and the chain’s well-known Frosty desserts to local customers.
The local closures are part of a sweeping national restructuring plan by the Dublin, Ohio-based company. Wendy’s announced that roughly 5% to 6% of its nearly 6,000 restaurants in the United States will close during the first half of 2026, representing approximately 298 to 358 locations nationwide. The move follows another round of cuts in 2024, when the company shuttered 240 U.S. restaurants as part of a broader effort to review its restaurant network and remove locations that were struggling financially or operating in older facilities.
Company leaders say the closures are intended to strengthen the brand’s overall restaurant network by concentrating sales at stronger-performing locations and updating the company’s footprint. The changes come during a challenging period for many quick-service restaurant chains as inflation and rising living costs continue to influence consumer spending habits.
Recent financial results illustrate the pressure facing the brand. Wendy’s reported that global same-restaurant sales, which measure sales at locations open at least a year, declined about 10% during the October through December quarter, a drop steeper than the 8.5% decline analysts had expected. U.S. same-store sales declined even further during the same period.
The company reported fourth-quarter revenue of $543 million, a decrease of 5.5% compared with the previous year, although the total exceeded the $537 million analysts had forecast. For the full year, Wendy’s reported global systemwide sales of $14 billion, a decline of 3.5% compared with 2024. Systemwide sales include transactions at both company-operated and franchised restaurants.
Despite the decline in U.S. sales, the company reported continued growth internationally. International systemwide sales increased 6.2% in the fourth quarter and rose 8.1% for the full year. The company also expanded its overall global presence during 2025, adding 157 net new restaurants and bringing the worldwide total to more than 7,000 locations.
Wendy’s reported net income of $26.5 million for the fourth quarter and $165.1 million for the full year. Adjusted EBITDA totaled $113.3 million for the quarter and $522.4 million for the year. Reported diluted earnings per share were $0.14 for the fourth quarter and $0.85 for the full year, while adjusted earnings per share totaled $0.16 and $0.88 respectively.
The company generated $344.5 million in cash from operating activities during the year and reported $205.4 million in free cash flow. In response to slowing domestic sales, company leaders have introduced a broader restructuring and modernization strategy known as Project Fresh, which focuses on updating restaurants, improving operational efficiency and placing greater emphasis on everyday value offerings.
“One learning from 2025 around value, we swung the pendulum too far toward limited-time price promotions instead of everyday value,” interim CEO Ken Cook said during a conference call with investors.
As part of that strategy, the company introduced a permanent value platform called Biggie Deals in January. The platform includes three pricing tiers aimed at cost-conscious diners: $4 Biggie Bites, $6 Biggie Bags and an $8 Biggie Bundle. The company also plans to introduce new menu items in 2026, including a new chicken sandwich, as part of its effort to regain customer traffic.
Executives say refining the company’s restaurant footprint is a key part of the turnaround strategy. “Having the right restaurant footprint in each market is critical to profitability,” Cook told investors. The closures will primarily affect restaurants that are losing money or operating in aging facilities that no longer meet the company’s standards.
For some communities, the impact will mean a slightly longer drive to the nearest Wendy’s restaurant. In Folsom, however, the closure of both locations will remove the brand entirely from the city’s restaurant lineup.
Founded in 1969, Wendy’s has grown into one of the world’s largest quick-service restaurant brands, known for its made-to-order square hamburgers using fresh beef along with menu staples such as the Baconator, Spicy Chicken Sandwich, chicken nuggets and the Frosty dessert. The company and its franchisees employ hundreds of thousands of workers across more than 7,000 restaurants worldwide.
For Folsom residents who have made the Riley Street and Iron Point Road restaurants part of their routines — whether for a quick lunch stop, after-school meal or late-night Frosty — the coming weeks will mark the final chapter for a brand that has been part of the city’s fast-food landscape for years.
Copyright © 2026, Folsom Times, a digital product of All Town Media LLC. All rights reserved. No portion of this publication may be reproduced, distributed, or transmitted in any form or by any means, without the prior written permission of the publisher.
