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Wendy's is planning to close hundreds of its locations across the United States as part of a new turnaround strategy. Interim CEO Ken Cook announced on Friday (November 7) that a "mid single-digit percentage" of the chain's approximately 6,000 US locations will be shuttered, which translates to around 200 to 350 restaurants. These closures target locations that are "consistently underperforming" and negatively impacting the chain's overall performance, Cook explained to analysts.
The closures will begin this year and continue through 2026. Cook emphasized that these actions aim to "strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants." The expectation is that closing underperforming units will boost sales and profitability at nearby locations.
This decision follows a year after Wendy's closed 140 locations for similar reasons. The chain has been struggling, with US same-store sales declining by 4.7%, while competitors like McDonald's, Burger King, and Shake Shack have reported positive earnings. Despite these challenges, Wendy's has seen promising results from its new chicken tenders, "Tendys," which have been in high demand. Cook expressed optimism about the product, stating, "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."
A specific list of the locations set to close has not been released. As Wendy's moves forward with its turnaround plan, the company hopes to improve its market position and financial performance.