Wendy’s Restaurant Closures Signal Major Fast-Food Shakeup

Wendy’s will close hundreds of its U.S. locations. The announcement came during an earnings call on November 7. The closures will affect a mid-single-digit percentage of its roughly 6,000 domestic restaurants.

This translates to between 200 and 350 stores shutting down. The decision follows a reported decline in sales and profitability. According to Reuters, the move aims to strengthen the brand’s remaining footprint.

Weak Sales and Rising Costs Force Restructuring

Wendy’s interim CEO, Ken Cook, detailed the challenges. U.S. same-restaurant sales fell 4.7% in the third quarter. Overall revenue also dropped by 2.6%.

He cited rising food and labor costs as primary factors. Intense competition from value-focused chains added pressure. Consumer pull-back on spending further hurt performance.

The closures are expected to begin in late 2025. They may continue into the 2026 fiscal year. The company has not yet disclosed which specific locations will close.

Strategic Shift Under “Project Fresh” Initiative

This restructuring is part of a larger plan called “Project Fresh.” The goal is to shut down underperforming units. Franchisees will be directed to reinvest in stronger, more profitable locations.

Cook stated that closing weaker stores should boost sales at nearby remaining outlets. This strategy is intended to improve overall brand health. Last year, the chain already closed 140 restaurants.

Rivals like McDonald’s and Burger King reported growth in the same period. This competitive gap intensified the pressure on Wendy’s to act decisively. The company is also searching for a permanent CEO to lead the turnaround.

The planned Wendy’s restaurant closures represent a significant contraction for the iconic chain. This strategic retreat highlights the intense pressures within the fast-food industry. The success of this consolidation will be critical for the brand’s future stability.

Thought you’d like to know

Which Wendy’s locations are closing?

The company has not released a specific list of closing restaurants. The closures will target underperforming locations across the United States. The exact sites will be determined in the coming months.

Why is Wendy’s closing so many restaurants?

The closures are a response to falling sales and rising costs. Wendy’s reported a 4.7% decline in U.S. same-store sales. Competition and consumer spending habits also contributed to the decision.

When will the Wendy’s closures happen?

The process is scheduled to begin in late 2025. It is expected to continue into the 2026 fiscal year. The timeline allows for a managed wind-down of operations.

How will this affect Wendy’s employees?

Employees at affected locations will likely face job losses. The company may offer transfers to other restaurants where possible. Specific workforce transition plans have not been detailed publicly.

Is Wendy’s struggling more than other fast-food chains?

While Wendy’s reported a sales decline, competitors like McDonald’s saw growth. This performance gap prompted the drastic closure plan. The move is intended to make the remaining chain more competitive.

Trusted Sources

Reuters
CNN