Wendy’s Plans to Close Hundreds of U.S. Locations to Boost Profitability

Wendy’s is considering the closure of hundreds of locations across the United States as part of a strategic initiative aimed at improving profitability. In a recent statement, Ken Cook, the Interim Chief Executive Officer and Chief Financial Officer of Wendy’s, revealed that the company is collaborating with U.S. franchisees to assess every underperforming restaurant. This evaluation focuses on both financial performance and customer experience, with plans in development for improvement.

The Dublin, Ohio-based fast-food chain indicated that the assessment process is ongoing and could potentially lead to the closure of a “mid-single-digit percentage” of its U.S. restaurants. This could translate to hundreds of locations shutting down, as Cook noted during a quarterly earnings call on Friday morning. The closures may commence at the end of this year and extend into 2026.

Details on the Strategic Shift

These potential closures are part of Wendy’s broader initiative known as “Project Fresh,” which was announced in October. This plan aims to foster growth and create long-term value across the company’s U.S. locations. In a press release, Art Winkleblack, Chairman of the Board, expressed the board’s dissatisfaction with the current valuation of the company. He stated that management has been actively working to reposition Wendy’s for greater value creation for franchisees, employees, and shareholders.

“Execution is underway, and we are confident that Project Fresh will position Wendy’s as the industry leader — one that guests love, franchisees are proud to operate, teams are excited to be a part of, and creates significant value for our shareholders,” Winkleblack said.

Wendy’s had previously closed 140 U.S. restaurants in 2024, although these closures were offset by the opening of 250 new locations in the same year. Currently, Wendy’s operates just under 6,000 locations across the United States, indicating a robust presence in the fast-food market.

As the company moves forward with its evaluation and restructuring plans, stakeholders will be closely watching the outcome of these decisions and their potential impact on Wendy’s market position and overall financial health. The focus will remain on enhancing customer experience while addressing underperforming assets to ensure a sustainable future for the brand.