The fast-food burger sector has faced economic challenges over the last year that have led major chains, such as A&W Restaurants, to close locations.
A significant issue for burger chains was mixed sales results over the last year.
The leading fast-food burger chain is enjoying another year of success, with McDonald’s U.S. sales in 2025 rising by 2.1%.
The industry’s No. 2 burger chain Wendy’s didn’t finish the year as well, as its U.S. sales declined by 5.2% in 2025, but the No. 3 burger chain, Restaurant Brands International’s Burger King, had a 1.6% increase in U.S. sales.
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 as part of its Project Fresh turnaround plan.
Other burger chains are also closing underperforming locations that no longer make economic sense to operate.
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A&W closes franchise locations
A&W Restaurants closed its location in the River Hills Mall in Mankato, Minn., on April 29, 2026, because of financial distress, the franchisee announced on its Facebook page.
“With very saddened hearts, we have to announce that we have closed due to economic reasons. We have appreciated all you have done for us. We will miss and love y’all,!!” the statement read.
The franchisee did not reveal specific details about why it needed to close the restaurant. The A&W location opened in late 2018, according to KEYC-TV.
Restaurant was struggling
Another A&W Restaurant, located in Pocatello, Idaho, permanently closed its store at 1335 N. Arthur Ave., on April 2, 2026, as the franchisee was struggling financially and had its franchise contract pulled by the A&W corporation, Idaho State Journal reported.
The restaurant’s general manager, Reed Rollins, said that he and the other Pocatello location employees were informed just days before the closure that the A&W was going out of business but thought it was an April Fool’s joke, according to the State Journal.
The 107-year-old A&W chain announced on social media that the Pocatello location would close April 3, but after a wave of community support, the restaurant reportedly sold out of all of its remaining stock and closed a day early on April 2.
“Yesterday, we did a $4,500-day, when we used to do like $1,300,” Rollins told the State Journal. “It was so amazing. I even teared up a little bit, because I had been here since the start.”
The Pocatello A&W location opened in 2016, and its original owner died in 2018.
Popeyes might replace A&W
The Ohio-based owner of the A&W property has been negotiating with Popeyes about transitioning the location into one of the fried chicken chain’s franchises. If an agreement is sealed, a Popeyes could open in three to five months, according to estimates reported by the State Journal.
One of A&W’s legendary restaurants in St. Helena, Calif., which had been open nearly 60 years, permanently closed on March 31, 2026, as the franchise’s owners blamed declining foot traffic, difficulty finding employees, the expense of doing business in Napa Valley, and a recent decline in school enrollment, with St. Helena High School across the street, SFGate reported.
Yum Brands sold chains
Franchisee-led company, A Great American Brand LLC, purchased A&W Restaurants Inc. from Yum Brands Inc. in September 2011. Yum Brands at the same time sold its Long John Silver’s chain to another consortium of franchisees, LJS Partners LLC.
The A&W Restaurants chain, which was founded in Lodi, Calif., in 1919, operates about 850 restaurants in 35 states and Asia. The dining chain includes over 600 single-brand locations and about 230 units that are co-branded with either KFC or Long John Silver’s.
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