Wendy’s Crisis: Why the fast-food giant is closing hundreds of restaurants across the U.S.

Wendy’s has confirmed it will close up to 360 restaurants across the U.S. over the next two years as part of a broad plan to boost profits and cut underperforming outlets. Interim CEO Ken Cook revealed the closures during a Friday earnings call, describing it as a “difficult but necessary step” to secure the company’s future.

The Ohio-based chain currently operates about 6,000 restaurants nationwide. Cook said a “mid single-digit percentage” of these locations, roughly 200 to 360, will be phased out between late 2025 and 2026, primarily focusing on stores that have struggled with poor sales performance.

According to Cook, these closures will “strengthen the system and enable franchisees to invest more capital and resources into their remaining restaurants,” ultimately boosting profitability across surviving locations.

Underperforming Stores and Stiff Competition Hit Wendy’s Hard

The closures come amid rising competition in the fast-food sector. While Wendy’s same-store sales dropped 4.7% in the most recent quarter, competitors such as McDonald’s, Burger King, and Shake Shack recorded gains, thanks to aggressive marketing and value-focused promotions.

Industry analysts say Wendy’s struggles stem from slow adaptation to digital ordering trends and a lack of innovative promotions compared to its rivals. Despite offering fan favorites like the “Baconator” and new “Tendys” chicken tenders, many customers have shifted loyalty toward brands offering loyalty app deals and mobile-exclusive discounts.

The closures will allow the company to redirect investments into technology upgrades, digital kiosks, and modernized kitchen systems in remaining restaurants, a move Cook says could “elevate the guest experience” and make operations more efficient.

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Turnaround Strategy: Fewer Stores, Better Performance

Rather than a full retreat, Wendy’s is positioning this as a strategic reset. The company is evaluating alternatives such as transferring ownership of weak outlets to stronger operators and investing in store modernization to drive long-term profitability.

This move follows a similar restructuring last year, when Wendy’s closed 140 locations due to performance issues. Despite these setbacks, Cook insists the brand remains committed to growth and innovation, pointing to strong demand for its new “Tendys” chicken tenders, which sold out in some markets before full advertising even began.

“We’re encouraged by early results,” Cook said. “This is just the beginning of reclaiming Wendy’s leadership in the chicken segment and the quick-service space.”

Economic Pressures and Shifting Consumer Habits

Beyond competition, economic headwinds have also hit Wendy’s bottom line. Inflation has driven up ingredient and labor costs, forcing franchisees to raise menu prices, something that has deterred price-sensitive customers.

Meanwhile, younger consumers are increasingly drawn to fast-casual restaurants offering healthier, customizable options. This shift has prompted Wendy’s to rethink its brand positioning, with plans to expand digital ordering, loyalty programs, and menu innovation.

Analysts note that while closures can be seen as a setback, they also represent an opportunity for renewal if Wendy’s focuses on high-performing urban and suburban markets where brand loyalty remains strong.

What Customers Can Expect Next

For now, Wendy’s has not released a list of affected restaurants, though the company confirmed that the process will begin in the fourth quarter of 2025. Customers may start noticing store shutdowns, remodeling efforts, or temporary closures as part of this overhaul.

Despite the restructuring, Cook reassured fans that Wendy’s is “not going anywhere.” The company plans to continue expanding internationally, where growth has been robust, and double down on menu innovation in the U.S. market.

“Our goal is to come out of this leaner, stronger, and more competitive than ever,” Cook emphasized.

FAQ

1. Why is Wendy’s closing restaurants in 2025?

Wendy’s is closing between 200 and 360 U.S. restaurants as part of a cost-cutting plan to eliminate underperforming stores and improve overall profitability.

2. Which Wendy’s locations will be affected?

The company has not released a specific list of affected restaurants. Closures will focus on outlets that have shown consistent underperformance in recent quarters.

3. When will the Wendy’s closures begin?

The closure process will start in the fourth quarter of 2025 and continue through 2026, according to interim CEO Ken Cook.

4. Is Wendy’s going out of business?

No. Wendy’s remains financially stable and is restructuring to strengthen its operations. The closures are part of a broader turnaround strategy.

5. Will employees lose their jobs due to the closures?

Some layoffs are expected, but Wendy’s says it will attempt to transfer affected employees to nearby franchise locations when possible.

6. What’s next for Wendy’s after the closures?

Wendy’s plans to invest in technology upgrades, menu innovation, and digital ordering systems to modernize its customer experience and regain market share.

7. How has Wendy’s performed compared to its competitors?

Wendy’s same-store sales fell 4.7% in the latest quarter, while rivals like McDonald’s and Burger King posted gains due to successful promotions and app-based offers.