Wendy’s, one of America’s most recognized fast-food chains, has announced plans to close hundreds of restaurants across the United States as part of a sweeping turnaround strategy aimed at reviving its declining sales and profitability.
Hundreds of Wendy’s Restaurants Set to Close
According to CNN Business, interim CEO Ken Cook confirmed on Friday that the company will shut down a “mid single-digit percentage” of its approximately 6,000 U.S. locations, meaning roughly 200 to 350 Wendy’s restaurants could close their doors between 2025 and 2026.
Cook explained that the closures will primarily affect underperforming locations that have been dragging down the chain’s overall performance.
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said.
The company hopes that by trimming weaker outlets, it can improve efficiency, boost local sales, and enhance profitability at nearby stores that continue to perform well.
Underperforming Stores Behind the Decision
Wendy’s decision comes after several quarters of sluggish growth and increasing pressure from rivals such as McDonald’s, Burger King, and Shake Shack, all of which have reported positive sales driven by value deals and aggressive marketing.
In the latest earnings report, Wendy’s revealed that U.S. same-store sales dropped 4.7%, marking another disappointing quarter for the chain. This is a stark contrast to competitors, many of whom are seeing strong demand despite rising menu prices across the industry.
This move follows a similar wave of closures last year, when Wendy’s shuttered about 140 restaurants due to continued underperformance.
A Strategic Reset for Wendy’s Brand
The closures are part of Wendy’s larger effort to streamline its operations, refresh its menu, and focus on high-performing locations that can deliver sustainable growth. The company believes these changes will help it remain competitive in a crowded fast-food market increasingly dominated by value promotions and digital convenience.
Wendy’s has also been working to revamp its menu offerings and strengthen its appeal among younger consumers. One recent success story is the launch of its new chicken tenders, branded as “Tendys.” Despite the company’s overall struggles, Cook reported that demand for the new item was so strong that some stores sold out even before official advertising 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,” said Cook.
The Broader Fast-Food Landscape
The fast-food sector has become increasingly competitive, with brands battling for market share amid changing consumer habits and tighter household budgets. Many restaurants are relying on loyalty programs, digital app promotions, and limited-time offers to drive sales.
However, inflationary pressures and rising labor costs have also forced chains to reevaluate their footprint, focusing on efficiency rather than aggressive expansion.
For Wendy’s, the current closures appear to be part of a two-year restructuring plan aimed at consolidating its presence in core markets and improving franchise profitability.
What’s Next for Wendy’s
Although the company did not release a list of specific locations affected by the closures, industry analysts expect the majority of shutdowns to occur in high-rent urban markets or regions with declining customer traffic.
Meanwhile, Wendy’s remains optimistic about its future and is betting on menu innovation and franchise reinvestment to turn things around. The chain is also likely to explore new drive-thru concepts, mobile ordering enhancements, and potential international expansion to offset domestic challenges.
Conclusion
The announcement that Wendy’s restaurants are closing underscores the significant transformation underway within the iconic fast-food brand. While hundreds of U.S. locations will soon shut down, the company insists this strategy is essential to revitalize performance and regain competitive strength in a rapidly evolving restaurant industry.
As Wendy’s works to modernize its operations and sharpen its brand focus, the next two years will be crucial in determining whether this turnaround plan delivers the desired results — or signals a deeper struggle for one of America’s best-known burger chains.
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