Wendy’s Set to Close 300 Struggling Locations by 2026

Wendy's plans to shut down nearly 300 restaurants across the U.S. by 2026. The announcement came during the November 7 earnings call, part of a strategic effort to get rid of "underperforming units" and boost sales in nearby spots.

Interim CEO and CFO Ken Cook noted that Wendy's is assessing restaurants from both financial and customer experience perspectives. "We're focused on improving restaurant-level economics, taking a hard look at underperforming restaurants in our system," Cook told FOX 5 Atlanta. The goal is to unlock funds for franchisees, letting them reinvest in the brand with upgrades and potentially new locations.

Based on Wendy's total network of 6,000 stores, a small percentage will close, according to Cook. The closures are planned to start this fall and are part of broader efforts to refresh the brand and enhance customer experiences. Affected franchisees will have the option to put the freed-up resources toward equipment, technology, and building new locations.

Wendy's hasn't revealed which stores will close. A thorough review will decide this, with no target areas shared with the public. However, in 2024, Wendy's closed 140 stores in low-performing trade areas. CEO Kirk Tanner noted these units often were in outdated regions struggling to perform.

Wendy's has a history of closing unproductive spots to streamline its footprint, including a major round of closures and cost-cutting in 2006. The company divested Tim Hortons and sold Baja Fresh Mexican Grill during that time.

Despite these closures, Wendy's plans to open 250 to 300 new, more profitable restaurants in 2024. These openings aim at stronger sales areas and higher profits. The initiative aligns with a larger fast-food trend where companies close locations due to changing consumer habits and financial limits.

Founded in 1969, Wendy's introduced the first modern drive-thru window. Over 55 years, the chain has faced the task of staying relevant. Tanner acknowledged the importance of updating outdated locations to stay competitive.

Besides domestic plans, international growth remains a priority. Wendy's is looking for net unit growth to balance closures and new openings.

Despite changes in leadership and earlier restructuring, Wendy's is committed to supporting franchisees and improving customer satisfaction to ensure the brand's lasting success.