Wendy’s is gearing up to close 350 locations nationwide, marking one of the largest cutbacks in the company’s history.
Wendy’s announces widespread store closures through 2026
According to CNN, Interim CEO Ken Cook informed analysts on Friday that roughly 200 to 350 Wendy’s locations — representing a “mid single-digit percentage” of the company’s approximately 6,000 U.S. restaurants — could be closed. Cook explained that the planned closures will focus on “underperforming” outlets as part of an effort to “boost sales and profitability.”
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”
The chain plans to begin shuttering these locations later this year, with the process extending into 2026.
In 2024, Wendy’s closed 140 U.S. restaurants but noted that new stores would open in stronger-performing markets.
How Wendy’s will decide which locations to close
Cook did not disclose which specific locations would be affected. The fast-food chain does not plan to shutter every underperforming restaurant. Instead, Cook said Wendy’s intends to evaluate each struggling location individually to determine the best course of action. Rather than applying a one-size-fits-all approach, the company will assess whether stores can be revitalized or if closure is the most practical solution.
What Wendy’s closures mean for staff
The closure of up to 350 Wendy’s restaurants could result in thousands of job losses and reduced competition in certain local markets.
When a Wendy’s location shuts down permanently, the fate of its employees can vary depending on the situation and whether the restaurant is corporate-owned or franchise-operated. In some cases, staff may be offered the opportunity to transfer to nearby locations, while managers or long-term employees could receive severance packages.
All workers are entitled to receive their final paycheck, including any accrued vacation or earned wages, in accordance with state labor laws. Employees who are not transferred may also qualify for unemployment benefits, and some franchisees provide support to help affected staff find new employment.
At this time, it remains unclear whether affected employees will have the opportunity to transfer to nearby locations.
Is Wendy’s losing ground to its competitors?
The burger chain has struggled to keep pace with its competitors in recent quarters. U.S. same-store sales fell 4.7 percent, while rivals like McDonald’s, Burger King, and Shake Shack reported gains. According to The Wall Street Journal, Wendy’s shares dropped 2.6 percent on Friday and have tumbled 46 percent so far this year. The company also posted quarterly net income of $44.3 million, down from $50.2 million a year ago.
Despite these challenges, Cook pointed to some reasons for optimism. Wendy’s new chicken tenders, dubbed “Tendys,” have proven surprisingly popular. “We’re looking forward to continuing that momentum, and this is an encouraging first step as we look to reestablish our leadership position in chicken,” he said, noting that some stores sold out of the item even before the marketing campaign officially began.
Sources: CNN, The Wall Street Journal, Newsweek