Wendy's to Close Hundreds of U.S. Restaurants Amid Profit Decline

Wendy's has announced plans to close hundreds of its U.S. restaurants in an effort to boost profitability and enhance the performance of its remaining locations. The closures are expected to begin in the fourth quarter of 2025 and could affect approximately 5% of the company's 6,011 U.S. stores—around 300 locations.

This decision follows the closure of 240 U.S. Wendy's locations in 2024, attributed to outdated facilities. Interim CEO Ken Cook stated that addressing underperforming restaurants, whether due to financial issues or customer service concerns, will help improve traffic and profitability at the remaining U.S. locations.

Cook, who assumed the role in July after the departure of former CEO Kirk Tanner, emphasized the company's commitment to revitalizing its brand. He mentioned that some struggling stores might receive technological upgrades or equipment enhancements, while others could be transferred to different operators or closed altogether.

The fast-food industry has faced challenges in attracting lower-income consumers amid rising inflation. Wendy's reported a 4% decline in U.S. same-store sales during the first nine months of 2025 compared to the same period last year. Revenue fell 2% to $1.63 billion, and net income decreased by 6% to $138.6 million.

To counteract declining sales, Wendy's has introduced $5 and $8 meal deals, which have been matched by competitors like McDonald's. However, Cook acknowledged the need to attract new customers and plans to shift marketing efforts to emphasize the company's value and the freshness of its ingredients.

Following the announcement, Wendy's shares dropped 7% on Friday and were down 5% in afternoon trading on Monday.