Wendy’s Plans to Close Hundreds of Locations to Boost Profits

Wendy’s is considering the closure of hundreds of its locations across the United States as part of a strategy aimed at improving profitability. The company is currently collaborating with its U.S. franchisees to assess each underperforming restaurant, focusing on both financial metrics and customer experience. This initiative was announced by Ken Cook, Wendy’s Interim Chief Executive Officer and Chief Financial Officer, during a recent earnings call.

The review process is already in progress, but Wendy’s has not disclosed specific numbers or locations that may be affected by potential closures. Cook indicated that “a mid-single-digit percentage of U.S. restaurants” could be closed as part of an optimization effort. Given that Wendy’s operates just under 6,000 locations in the U.S., this could equate to several hundred restaurants shutting down.

Timeline and Strategic Initiatives

Cook noted that the closures may begin later this year and extend into 2026. These actions are part of Wendy’s “Project Fresh,” a plan announced in October aimed at fostering growth and enhancing long-term value across its U.S. operations. According to a press release, the initiative is designed to address the current valuation concerns expressed by the company’s Board of Directors.

Art Winkleblack, Chairman of the Board, stated in the October announcement that both the board and management team are dissatisfied with the company’s current valuation. They are working to reposition Wendy’s to create value for franchisees, employees, and shareholders. Winkleblack expressed confidence that Project Fresh will establish Wendy’s as an industry leader, enhancing customer loyalty and franchisee pride.

Recent Performance History

In 2024, Wendy’s closed 140 U.S. restaurants, a decision offset by the opening of 250 new locations during the same year. This illustrates the company’s ongoing efforts to adapt to market demands while managing its footprint in the competitive fast-food sector.

The potential closures and strategic initiatives come as part of a broader reassessment of Wendy’s operational model. As the company seeks to optimize its performance, stakeholders will be watching closely to see how these changes impact both the brand’s reputation and its financial health in the coming years.