The well-known fast-food chain Wendy’s has announced an ambitious plan to close “a percentage of low-performing stores” across the United States, which means approximately 200 to 350 locations will shut down as part of the company’s strategy to reverse declining sales and regain profitability.
During a conference call with investors held on November 7, 2025, the company’s CEO, Ken Cook, stated that the closures would take place by the end of this year and continue into early 2026. This move follows the 240 locations already closed in 2024 as part of a portfolio review. Wendy’s reported that sales at restaurants open for at least one year fell by 4% during the first nine months of 2025, while total revenue dropped by 2% and net profit declined 6%, reaching $138.6 million.
Why is Wendy’s choosing to close locations instead of expanding?
Because the company believes that some restaurants do not enhance the brand’s reputation and represent a financial burden for franchise owners. By closing or transferring these locations, Wendy’s aims to focus its resources on more profitable units and strengthen the overall customer experience.