Wendy’s is planning to close hundreds of its locations across the United States, as revealed by interim CEO Ken Cook. Speaking to CNN, Cook indicated that a “mid single-digit percentage” of Wendy’s approximately 6,000 U.S. restaurants are slated for closure, which translates to around 200 to 350 locations. The closures are set to begin this year and will extend through 2026, although specific locations have not yet been announced.
Cook explained that the targeted closures are of locations that are “consistently underperforming,” which he suggests are negatively impacting the overall performance of the chain. This decision comes on the heels of Wendy’s decision to close 140 restaurants nationwide, including at least 12 in Michigan, in December 2024. Cook emphasized that the closures will allow remaining franchisees to invest more capital and resources into their restaurants. He anticipates that these actions will lead to increased sales and profitability at locations that remain operational.
The announcement follows a decline in U.S. same-store sales, which fell by 4.7% primarily due to commodity inflation, decreased customer traffic, and rising labor costs. In contrast, rival chains such as McDonald’s, Burger King, and Shake Shack reported positive earnings, as customers have shown a preference for their renewed strategies focusing on more affordable deals.
Despite these challenges, Cook remains optimistic about Wendy’s future. He pointed to a renewed focus on execution and cited the successful launch of new chicken tenders as a positive development. Additionally, Wendy’s has initiated “Project Fresh,” a comprehensive turnaround plan aimed at revitalizing the brand, improving operational excellence, optimizing the system, and strategically allocating capital. Cook stated, “We are acting with urgency to execute the operational and brand initiatives to drive AUV growth in the U.S., creating value for our franchisees and shareholders.”
As the fast-food chain moves forward with these changes, the focus will be on overcoming current challenges and enhancing the overall performance of its remaining locations.
