Closures aim to eliminate underperforming locations
Wendy’s will close up to 350 restaurants across the United States as part of a sweeping effort to streamline operations and boost overall performance. Interim CEO Ken Cook announced the plan on Friday, stating that a “mid single-digit percentage” of the company’s 6,000 domestic locations will be shut down over the next two years.
The closures will target restaurants that have “consistently underperformed,” dragging down the chain’s broader results. Cook told analysts that eliminating these units will allow franchisees to focus investments on better-performing locations, leading to stronger overall profitability.
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”
Closures build on last year’s reductions
This isn’t the first wave of downsizing for Wendy’s. In 2024, the company closed 140 locations due to similar underperformance. While a list of affected stores was not provided, the company emphasized that closures will begin in 2025 and continue into 2026.
The move comes as Wendy’s struggles to keep pace with competitors. In the latest quarter, U.S. same-store sales fell by 4.7%, contrasting with gains at McDonald’s, Burger King, and Shake Shack, all of which benefited from aggressive promotions and targeted marketing campaigns.
New chicken menu shows early promise
Despite the broader challenges, there is some optimism. Cook highlighted strong early demand for Wendy’s new chicken tenders, dubbed “Tendys.” Some locations reportedly sold out before any formal advertising even began.
“We’re looking forward to continuing that momentum, and this is an encouraging first step as we look to reestablish our leadership position in chicken,” Cook said.
