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Why is Wendy’s closing more than 300 stores across US? Reasons explained

Wendy’s will close over 300 US restaurants in 2025 as part of a major restructuring to improve franchise performance and brand consistency.
posted by Gomala Devi
Saturday 11/8/2025 at 12:00AM EST
  • Sign for the fast food brand Wendy's on 17th November 2023 in London, United Kingdom. Wendy's is an American international fast food restaurant chain founded by Dave Thomas in 1969. (photo by Mike Kemp/In Pictures via Getty Images)
    Sign for the fast food brand Wendy's on 17th November 2023 in London, United Kingdom. Wendy's is an American international fast food restaurant chain founded by Dave Thomas in 1969. (photo by Mike Kemp/In Pictures via Getty Images)

    Wendy’s plans to close over 300 locations in the United States as it undertakes a broader restructuring effort. The company aims to enhance performance among franchise owners and maintain a more consistent brand. This decision follows Wendy’s announcement that it will close 140 restaurants in 2024.

    Ken Cook, the interim CEO, told USA Today that the company expects to close a "mid single-digit percentage" of its U.S. branches. There are approximately 6,000 Wendy’s locations across the country, which means the closures will result in between 240 and 360 locations. During a call, one investor estimated the figure would be closer to 300.

    “When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” Cook said. “The goal is to address and fix those restaurants.”

    Cook said the company plans to handle each case. Some restaurants will get new technology and equipment, or they might be handed over to different operators. Others, however, will shut down for good. The closures will start in the last quarter of this year, but Wendy’s has yet to reveal which spots will be impacted.

    Wendy’s faces sales decline but finds hope in popular “Tendys” launch

    Wendy's made this move while dealing with tough competition. Rivals like McDonald’s, Burger King and Shake Shack have shown growth, but Wendy’s saw U.S. same-store sales drop by 4.7%. This decline highlights the need for changes in how they operate.

    Even with the lower sales, their new chicken tenders, called “Tendys,” have gained a lot of attention. Cook pointed out that many locations sold out of them before they even started advertising.

    “We’re encouraged by the response,” he said, adding that the company is determined to grow in the chicken market.

    In 2024, Wendy’s Chief Financial Officer, Gunther Plosch, said the company had shut down 140 "outdated" restaurants during a review aimed at improving profits. At that time, a spokesperson explained,

    "After our strategic review, we now expect a similar number of closures as openings, so we expect net unit growth in 2024 to be roughly flat."

    These closures are part of Wendy’s ongoing effort to enhance operations and achieve steady, long-term growth.

    TOPICS: Wendy's


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