Wendy’s to Shutter Hundreds of U.S. Restaurants Amid Struggling Sales and Inflation Pressures

Wendy’s, one of America’s most iconic fast-food chains, is set to close hundreds of restaurants across the United States as part of a sweeping corporate overhaul. Interim CEO and CFO Ken Cook confirmed during a Friday earnings call that the Ohio-based burger giant plans to shutter a “mid-single digit percentage” of its approximately 6,000 U.S. locations—translating to roughly 200 to 350 restaurants.

The closures are expected to begin next year and continue through 2026 as part of Wendy’s broader plan to address financial underperformance and shifting consumer habits. Ken Cook emphasized that these decisions are necessary to “unlock capital for franchisees” and “improve the long-term health of the overall system.”

Underperforming Locations in the Crosshairs

While Wendy’s has yet to release a list of affected locations, the company stated that it is “taking a hard look at underperforming restaurants” based on both financial results and customer experience. The decision follows a year in which Wendy’s already shuttered 140 restaurants that were deemed outdated or poorly located.

“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook told analysts. The move is part of “Project Fresh,” a brand revitalization plan designed to modernize operations and reignite growth amid stiff competition from McDonald’s, Burger King, and Shake Shack.

Fast Food Faces Inflation and Customer Fatigue

Wendy’s announcement comes amid broader challenges for the fast-food industry. As inflation drives up menu prices, many customers have cut back on dining out or switched to cheaper alternatives. During the third quarter, Wendy’s reported a 4.7% drop in U.S. same-restaurant sales and a 2.6% decline in global systemwide revenue.

In contrast, rivals McDonald’s, Burger King, and Shake Shack all reported sales growth in the same period, buoyed by aggressive promotions and popular value menus. Wendy’s, however, has struggled to maintain customer loyalty despite introducing new items like its recently launched chicken tenders, dubbed “Tendys,” which saw strong demand in early tests.

 

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“Project Fresh” Aims to Revitalize Wendy’s Image

Despite the looming closures, Cook expressed optimism about Wendy’s future. “We’re working through a detailed and programmatic process with our franchisees to determine the best pace of closures and reinvestments,” he said. “These steps will ensure we make the right decisions for the long-term health of the brand.”

“Project Fresh” is expected to focus on modernizing restaurant layouts, digital ordering systems, and drive-thru experiences. Analysts suggest that the initiative could help Wendy’s recapture market share if executed effectively.

Still, with hundreds of restaurants closing and competition heating up, Wendy’s faces one of its biggest tests yet in its 55-year history.