Wendy’s to Close Hundreds of US Restaurants

Wendy’s, America’s third-largest fast-food chain, has announced plans to close 200 to 360 “underperforming” restaurants over the next two years.

Recognized throughout the nation by its logo of a little girl with red hair in pigtails, Wendy’s experienced a 4.7 percent decline in U.S. third-quarter sales, while its international sales jumped by 8.6 percent.

During a Nov. 7 earnings call, Ken Cook, interim CEO, said a single-digit percentage of its U.S. restaurants will be shutting their doors. As of Dec. 29, 2024, there were 5,933 Wendy’s locations in operation nationwide, according to a filing.

Cook said the closures are part of the company’s turnaround plans to improve profitability and reverse a decline in domestic sales.

“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.”

To date, Wendy’s has not released a list of affected restaurants but has said that closures could begin during the remainder of 2025.

In the call, the company attributed lower U.S. sales to several factors, including pressure on low-income consumers, inflation in beef and labor costs, underperformance in the breakfast market, and a more competitive quick-service restaurant environment.

The closures announcement comes on the heels of Wendy’s introduction of its Project Fresh initiative designed to attract new customers and increase guest frequency.

“This is about positioning Wendy’s as the freshest and highest quality choice in [the quick-service restaurant industry] by celebrating what makes us stand out from the competition,” Cook said.

The company also plans to enhance its training programs for employees to improve hospitality and deliver “exceptional customer experiences.” Cook indicated that digital and delivery businesses will also be enhanced, including digital menu boards and artificial intelligence.

Its 2025 build-to-suit capital has already been reduced by $20 million domestically, while globally, the home of the “Baconator” plans to continue expansion, particularly in Canada, the UK, and Central Mexico, where 50 new restaurants are planned. During the third quarter alone, the company opened 172 new international restaurants.

Regarding domestic franchisees, Cook said Wendy’s would work with them to improve profitability and either transfer the underperforming locations to another operator or close them.

Keeping consumer prices in mind, Wendy’s new value options include two Jr. Bacon Cheeseburger meals for $8 with french fries and a drink. Wendy’s Tendys, a new chicken tender dish with six new sauces, debuted in the fourth quarter, with some restaurants reporting sellouts even before national promotions.

The company is also collecting thousands of consumer surveys to help it understand what people are looking for most from their fast-food dining experience.

“We have some work to do to reestablish Wendy’s as the leader in quality and freshness in the industry,” Cook said.

Founded by Dave Thomas in 1969, Wendy’s is headquartered in Dublin, Ohio. Currently, there are more than 7,000 restaurants worldwide. Its third-quarter sales topped $3.5 billion. Other foods unique to Wendy’s are its square beef patties, its chili, and its baked potato selections.