The chain is targeting underperforming units to boost profitability
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The fast-food chain Wendys says it will shutter a mid-single-digit percentage of its U.S. units roughly 200-350 restaurants by end of 2025 and into 2026.
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The closures target underperforming stores that do not elevate the brand and drag down franchisee profitability; the company says this will free up resources for higher-performing locations.
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At the same time, Wendys is still opening new locations globally and backing a broader strategy of brand refresh and operational upgrades to stay competitive amid soft consumer spending.
Wendys is shrinking its footprint. During an investor call, interim CEO Ken Cook disclosed that the company plans to eliminate a significant number of its U.S. restaurants on the order of 200 to 350 units as the company reevaluates its portfolio and focuses on long-term profitability.
The closures will begin later this year and continue through 2026. The company operates approximately 6,000 U.S. locations, making the move equivalent to a mid single-digit percentage of its domestic units.
According to Cook, the restaurants marked for closure share some common features: below-average sales volumes, obsolete designs, weak trade areas, and generally failing to meet the companys brand expectations.
Franchisee economics appear to be a central concern. The chain notes that some units are a drag from a franchisee financial performance perspective, and by removing these weaker links the company hopes to reinvest in better-performing sites, better locations, and updated formats.
Also flagged: macroeconomic headwinds. Sluggish customer traffic, rising food and labor costs, and shifting consumer dining habits are contributing to the companys urgency to optimize.
What it means for the company
While the closures are a contraction in footprint, Wendys said it is not abandoning growth. The company is actively opening new restaurants globally and expects to continue expansion outside the U.S. Additionally, the business is investing in technology, remodels, and franchisee supportthese moves are part of a broader initiative dubbed Project Fresh internally.
Essentially, the path forward is: prune the weakest units, reinvest in the strongest, and pursue newer formats and international growth. In effect, the net-unit count may remain flat (or only modestly grow) but the aim is to lift profitability per unit and system-wide health.
Implications
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For consumers: Some local Wendys restaurants may close or discontinue operations sooner than expected; patrons in certain trade-areas may need to travel farther for a Wendys.
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For franchisees: Those operating underperforming sites may face closures or forced transitions; stronger franchisees may benefit from redistributed investment.
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For investors: The announcement sends a message that the company is shifting from growth-at-all-costs to selective optimization. That could appeal to shareholders focused on profitability rather than just unit count.
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For competitors: Wendys contraction in weaker markets may create openings for rivals to gain share in those same areas, while Wendys focuses on higher-ROI sites.
Posted: 2025-11-10 12:48:54










