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 reverse declining profits and improve 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. These actions follow the 2024 closure of 240 underperforming restaurants, attributed to outdated facilities.

Interim CEO Ken Cook, who took over after Kirk Tanner's departure in July, emphasized that closing or rehabilitating underperforming stores will help boost traffic and profitability. Strategies include adding modern technology, transferring ownership to different operators, or shutting locations entirely. The brand continues to face challenges, particularly in attracting lower-income consumers amid ongoing inflation. Sales at longstanding locations fell 4% in the first nine months of 2025, with overall revenue down 2% and net income declining 6% to $138.6 million.

Though discounted meal deals like $5 and $8 combos have helped draw back some customers, Wendy's struggles to attract new ones. The company plans to shift marketing focus to highlight value and freshness. The news led to a drop in Wendy's stock, with shares down 7% on Friday and 5% the following Monday.