Wendy’s may shutter as many as 300 underperforming restaurants across the U.S. by the end of 2026, part of a larger plan to cut financial drag and boost profitability for franchisees. The announcement came from interim CEO Ken Cook during an investor call last week.
How many Wendy’s locations could close?
Wendy’s operates more than 5,800 restaurants nationwide. A “mid-single-digit percentage” of stores could be impacted, which translates to:
- 150 to 300 locations potentially closing
- Closures expected to begin before the end of 2025
Cook described the move as necessary to address stores that are underperforming financially or failing to meet brand standards.
Why is Wendy’s closing stores?
Cook outlined several factors driving the potential closures:
- Some locations “do not elevate the brand”
- They drag down overall franchisee profitability
- Lower-income customers are pulling back on spending
- Not enough new customers are drawn in by value deals like the $8 junior bacon cheeseburger combo
What happens to those stores?
Not every struggling store will close immediately. Wendy’s is also exploring options such as:
- Operational upgrades to improve performance
- Transferring ownership to more capable franchisees
- Investing in new equipment and technology
In cases where recovery isn’t feasible, stores will close—and the savings will be reinvested in higher-performing locations.
“That will put money back in franchisees’ pockets and enable them to reinvest… in their remaining restaurants,” Cook said.
How are other parts of the business doing?
Despite the looming closures, Wendy’s isn’t retreating entirely:
- 170+ new locations opened globally so far in 2025
- Continued international growth planned for Canada and the UK
- Company-owned stores in the U.S. are outperforming franchised ones
- Employee turnover is down, and delivery service quality has improved
The chain recently launched chicken tenders and six new sauces—though the discontinuation of its sweet and sour sauce sparked backlash online.
What comes next?
More information is expected during the next quarterly earnings call. Cook indicated the brand is focused on long-term health, trimming fat where needed while reinvesting in stronger markets.
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