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

Wendy’s is considering the closure of hundreds of its restaurants across the United States as part of a strategy to improve profitability. The company’s Interim Chief Executive Officer and Chief Financial Officer, Ken Cook, shared insights during a recent earnings call, indicating that they are working closely with franchisees to assess the performance of underperforming outlets.

The evaluation process is designed to address both financial and customer experience issues within the company’s operations. “We are working with our U.S. franchisees to evaluate each and every underperforming restaurant in our system and developing action plans for how to improve both,” Cook stated. The company has begun this assessment but has not yet disclosed specific numbers or locations that may face closure.

During the earnings call, Cook mentioned that a “mid-single-digit percentage of U.S. restaurants” could be closed as part of the optimization efforts. This could potentially translate to hundreds of locations. The closures may begin towards the end of this year and continue into 2026, as part of the broader strategy outlined in the company’s recent initiative, known as Project Fresh.

Strategic Moves to Enhance Company Value

Wendy’s, headquartered in Dublin, Ohio, announced the launch of Project Fresh in October 2023, aiming to drive growth and create long-term value across its U.S. locations. Art Winkleblack, Chairman of the Board, expressed the board’s dissatisfaction with the company’s current valuation and emphasized the importance of positioning Wendy’s for future success.

“Execution is underway and we are confident that Project Fresh will position Wendy’s as the industry leader — one that guests love, franchisees are proud to operate, teams are excited to be a part of, and creates significant value for our shareholders,” Winkleblack stated in the October press release.

In 2024, Wendy’s closed 140 U.S. restaurants, although these closures were offset by the opening of 250 new locations during the same period. Currently, Wendy’s operates just under 6,000 locations across the United States, highlighting its substantial footprint in the fast-food market.

The potential closures reflect a strategic shift within the company as it seeks to enhance profitability and customer satisfaction. As Wendy’s navigates these changes, the focus remains on creating a stronger brand presence and driving value for franchisees, employees, and shareholders alike.