Wendy’s to Close Hundreds of Restaurants in Major Restructuring Move
Wendy’s — one of America’s most recognizable fast-food chains — has announced that it will be closing hundreds of its restaurants across the United States. The decision comes as part of a larger turnaround effort aimed at strengthening the brand and improving overall profitability after a period of sluggish sales.
Interim CEO Ken Cook confirmed the news on Friday, revealing that a “mid single-digit percentage” of Wendy’s roughly 6,000 U.S. locations would be shut down over the next year or two. That translates to somewhere between 200 and 350 restaurants, although a specific list of affected locations hasn’t yet been shared. These closures are set to begin later this year and continue through 2026.
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Cook explained that the move targets restaurants that have been consistently underperforming — locations that have failed to meet expectations both financially and operationally. He stated that shutting down these struggling branches would allow franchise owners to redirect their investments toward stronger restaurants, helping to improve the company’s overall system health. In his words, the closures are expected “to strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants.”
This decision follows a similar round of closures last year, when Wendy’s shuttered about 140 restaurants for similar reasons. Unfortunately, the brand’s latest earnings report shows that those efforts weren’t enough to reverse its downward trend. U.S. same-store sales — meaning sales at locations open for at least a year — dropped by 4.7%, while global systemwide sales declined by 2.6% during the most recent quarter.
These results are especially concerning given that Wendy’s main rivals, including McDonald’s, Burger King, and Shake Shack, have all managed to post positive sales growth in the same period. Many customers have been drawn to those competitors through creative marketing and aggressive value deals — areas where Wendy’s has struggled to keep up.
Despite these challenges, there are still some bright spots. Cook noted that the company’s recently introduced chicken tenders, known as “Tendys,” have been performing far better than expected. In fact, demand was reportedly so strong that some stores sold out before official advertising even began. Cook called this a promising sign and said Wendy’s plans to build on that success as it works to reestablish itself as a leader in the fast-food chicken category.
For now, the exact list of closing Wendy’s locations hasn’t been made public, and franchisees are still being evaluated on a case-by-case basis. While the closures will undoubtedly impact some communities and employees, Wendy’s leadership remains confident that this restructuring will lead to a leaner, more profitable, and ultimately more competitive chain in the long run.
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