Wendy's to Close Hundreds of Underperforming U.S. Locations

Wendy's has announced plans to close a "mid single-digit percentage" of its approximately 6,000 U.S. locations, equating to around 200 to 350 restaurants. Interim CEO Ken Cook stated that these closures target "consistently underperforming" locations that are impacting the chain's overall performance. The closures are set to begin this year and continue through 2026.

"These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants," Cook told analysts. "Closures of underperforming units are expected to boost sales and profitability at nearby locations."

A specific list of affected locations has not been disclosed. This decision follows the closure of 140 locations last year due to similar underperformance issues.

In the latest quarter, Wendy's reported a 4.7% decline in U.S. same-store sales, contrasting with positive earnings from competitors such as McDonald's, Burger King, and Shake Shack. Despite this, Cook highlighted the strong demand for the newly released chicken tenders, called "Tendys," noting that some restaurants sold out even before 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," he said.