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Wendy's is preparing to shutter hundreds of U.S. restaurants next year as part of a sweeping effort to boost profitability and refresh its brand image.
The Dublin, Ohio, based fast-food chain confirmed the move during a Friday earnings call, with interim CEO Ken Cook telling investors the company will begin closing restaurants in the fourth quarter. While executives declined to specify the exact figure, the "mid-single-digit percentage" cited would translate to roughly 300 stores across the country.
Wendy's ended the third quarter with 6,011 U.S. locations, meaning the closures could impact nearly one in twenty restaurants. The decision follows the shutdown of about 240 outlets in 2024, part of what the company described as an effort to retire aging and underperforming stores.
"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."
The closures are expected to focus on sites that lag in both sales and customer experience, with the company aiming to redirect resources toward remodels, drive-thru upgrades, and digital ordering investments. Analysts noted that Wendy's, now 55 years old, has struggled to keep pace with competitors like McDonald's and Chick-fil-A in maintaining consistent traffic across suburban markets.
Cook, who stepped in as interim CEO in July after Kirk Tanner's departure to Hershey Co., emphasized that the restructuring will ultimately strengthen the brand's U.S. footprint. "We're focusing on quality growth, fewer but better restaurants," he said.
The fast-food giant has faced mounting pressure from franchise owners to streamline operations amid rising labor and supply costs. Industry observers say the decision reflects a broader trend of "strategic downsizing," as major chains shed outdated properties in favor of smaller, more efficient layouts designed for app-based orders and delivery demand.
Though the company insists the closures will be selective, the move marks one of Wendy's most significant retrenchments in years, a quiet reset for a brand once defined by square burgers and sass, now tightening its belt for the long game.
