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Wendy’s to close hundreds of restaurants in the US; Here's why
Fast-food chain plans 200-350 closures after sales decline, aims to strengthen remaining locations
Burger chain Wendy’s has announced plans to close a mid-single-digit percentage of its roughly 6,000 U.S. locations, equivalent to about 200-350 restaurants, after reporting falling same-store sales and lagging profitability. According to CNN, the decision was disclosed during its November 7 earnings call.
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Weak quarter forces change
During its third-quarter earnings call, Wendy’s interim CEO Ken Cook cited a 4.7% decline in U.S. same-restaurant sales and an overall revenue drop of 2.6% on a constant-currency basis.
He flagged rising food-and-labor costs, competition from value chains and consumer pull-back as key headwinds. Because of the underperformance, Wendy’s will start closures in late 2025 and may continue into 2026.
The company did not reveal the exact location, expecting shop closure in the earnings call.
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Strategic reset under “Project Fresh”
On Wendy’s official page, they described the initiative as part of a turnaround strategy dubbed “Project Fresh,” aimed at shuttering underperforming units, directing franchisees to reinvest in stronger locations, and streamlining the brand’s value proposition.
Cook said, “Closures of under-performing units are expected to boost sales and profitability at nearby locations.”
The chain reported that last year, it already shuttered 140 outlets, and this newly announced wave of closures underscores the urgency of its transformation. Rivals such as McDonald's and Burger King posted positive growth during the same period, intensifying pressure on Wendy’s to act.
Meanwhile, the company is working on appointing a CEO for the chain restaurant while Cook works as the interim CEO.
Arthur Winkleblack, chairman of the board at Wendy, said, “The Board continues to work diligently on the CEO selection process. We are working with a leading global executive search firm and are carefully evaluating internal and external candidates to ensure the strongest leadership to guide the Company through its next phase of growth.”
