Wendy’s Plans to Shut Down 300 U.S. Stores by Late 2025
Wendy’s, the popular fast food chain, has announced plans to close approximately 300 stores across the United States by late 2025. This decision comes just a year after the closure of 140 locations. The interim CEO, Ken Cook, detailed this strategy during a quarterly earnings call.
Details of Store Closures
During the call on November 7th, Cook stated that the closures would represent a “mid single-digit percentage” of Wendy’s total locations. With around 6,000 stores currently operating, this could lead to a reduction of about 240 to 360 restaurants. One investor specifically estimated that about 300 locations would be shut down.
Reasons for the Closures
Cook explained that some restaurants do not enhance the brand or contribute positively to franchisee performance. To improve overall business health, Wendy’s plans to:
- Upgrade technology and equipment in some locations.
- Transfer struggling stores to new operators.
- Close locations that are underperforming.
Impact on Operations
The closures are set to begin in the fourth quarter of this year. However, a specific list of the stores facing shutdown has yet to be released. Wendy’s has recently faced challenges with sales, reporting a 4.7% decline in same-store sales and a 2.6% drop in global systemwide sales during the third quarter.
Future Prospects
The chain hopes that by addressing its underperforming locations, it can stabilize its business and return to a competitive position within the fast food market. Wendy’s has reached out for comments regarding this strategic shift, indicating that they are aware of customer and investor concerns.
