The fast-food burger sector is facing a significant downsizing of store locations as major chains have revealed plans to close hundreds of restaurants.
One of the largest burger chains, Wendy’s, said it plans to close 5%-6% of its 5,831 U.S. restaurant locations listed on its website, or about 292 to 350 underperforming units, in 2026, according to its fourth quarter earnings call reported by The Motley Fool.
Wendy’s closes underperforming stores
The fast-food chain said in the Feb. 13 call that it had already closed 28 restaurants as part of its system optimization program under its Project Fresh turnaround plan to reduce the number of underperforming units to improve profitability and franchisee economics. The remaining stores will be closed throughout 2026, the company said.
Another burger chain has been closing restaurant locations under the radar.
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Habit Burger closes locations
Popular fast-food chain The Habit Burger and Grill has quietly closed several locations over the last four months, most recently shutting its restaurant in Mooresville, N.C., The Charlotte Observer reported.
The Irvine, Calif.-based burger chain closed its location at 379 W. Plaza Drive in Mooresville in mid-April, citing a “shift in focus to other areas poised for growth,” according to a sign posted in one of the store’s windows.
The restaurant was listed as permanently closed in an April 21 Google posting, The Observer reported.
“This Location is closed. But our chargrills are fired up nearby. While we’ve closed this Habit Burger location, you can still enjoy your chargrill favorites at one of our nearby restaurants. Find your closest Habit at habitburger.com/locations or on the Habit Mobile App.” the sign read, according to The Observer.
When the Mooresville restaurant opened in 2023, the Charlotte area had six The Habit locations, CharlotteFive reported on Instagram. After the Mooresville closing, locations remain in Denver, N.C.; Monroe, N.C.; and Indian Land, S.C.
Burger chain closes other locations
The Habit Burger also closed a location in the Morris Hills Shopping Center, at 3043 U.S. Route 46, in Parsippany, N.J., in February 2026 after operating there for over 10 years, Parsippany Focus reported.
The restaurant did not state a reason for closing the Parsippany location, Parsippany Focus said.
Two months before closing the Parsippany restaurant, The Habit closed its location in Hesperia, Calif., which also had operated for about 10 years, in early December 2025, the Victorville Daily Press reported.
High prices, no drive-thru doom location
Customers cited the restaurant’s high burger prices, no drive-thru service, and its location near an In-N-Out Burger for closing the Hersperia The Habit, the Daily Press reported.
The Habit Burger, founded in 1969 in Santa Barbara, Calif., offers chargrilled hamburgers, sandwiches, side dishes, shakes, and sundaes.
The restaurant chain operates over 380 restaurants in 14 states and internationally, according to its website.
Hardee’s franchisee closes locations
A major Hardee’s burger chain franchisee, ARC Burger LLC, closed all 77 of its locations after Hardee’s Restaurants LLC filed a lawsuit against the franchisee in November 2025, for alleged failure to pay franchise fees and other obligations.
The franchisee subsequently filed for Chapter 7 bankruptcy liquidation on April 20, 2026, which invoked an automatic stay while its bankruptcy case proceeds.
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