Wendy’s to Close Hundreds of Underperforming Restaurants

Wendy’s has announced plans to close hundreds of its U.S. restaurants as part of a major turnaround strategy aimed at improving profitability and strengthening its franchise network.

Interim CEO Ken Cook revealed on Friday that a “mid single-digit percentage” of Wendy’s approximately 6,000 U.S. locations will shut down — an estimated 200 to 350 restaurants. The closures will primarily affect underperforming stores that have been weighing down the company’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 restaurant chain expects the closures to help boost sales and profitability at nearby locations.

The process will begin this year and continue through 2026, although Wendy’s has not released a list of the specific locations affected.

Financial Challenges and Strategic Restructuring

This decision follows last year’s move to close 140 Wendy’s restaurants, also due to poor performance. The company has struggled with declining sales while competitors such as McDonald’s, Burger King, and Shake Shack have reported growth.

In its most recent quarter, U.S. same-store sales fell 4.7%, signaling continued pressure on Wendy’s market position. Analysts say the closures are part of a broader effort to streamline operations and focus on high-performing markets.

New Menu Success: Chicken “Tendys” Drive Strong Demand

Despite the sales decline, Wendy’s has seen promising results from its new chicken tenders, branded as “Tendys.” Cook noted that demand was so strong that some restaurants sold out before the official advertising campaign 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 added.

Industry Outlook

Wendy’s closures mark one of the largest U.S. fast-food downsizing efforts in recent years. Analysts say the move could help the chain refocus its resources, modernize its stores, and improve profitability amid intense competition and shifting consumer preferences.

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