Wendy’s has announced plans to close a mid-single-digit percentage of its roughly 6,000 U.S. restaurants, equivalent to 250–300 locations, as part of a major system optimization effort designed to address declining sales and customer traffic.
The closures will begin in the fourth quarter of 2025 and continue into 2026, according to interim CEO Ken Cook, who described the move as a strategic step to eliminate underperforming restaurants and focus investment in stronger markets.
Cook said the goal is to “remove chronically underperforming or brand-damaging restaurants and reallocate resources to higher-performing markets.”
Sales Decline and Inflation Drive Wendy’s Strategy
Wendy’s has struggled through 2025 with falling same-store sales, declining customer traffic, and inflationary pressures on food and labor costs. The chain reported a 4.7% decline in U.S. same-restaurant sales and an overall 2.6% drop in revenue, forcing leadership to take corrective action.
On recent earnings calls, executives acknowledged that rising costs and stronger competition from value-driven chains have hurt profitability. Rival brands such as Chili’s, McDonald’s, and Burger King have captured more consumer attention through budget-friendly bundles like Chili’s popular “3 for Me” offer.
Industry data from Placer.ai shows double-digit foot-traffic growth at several casual dining chains in Q3 2025, indicating a broader consumer shift toward value options — a challenge for Wendy’s, which has traditionally positioned itself as a premium quick-service restaurant (QSR).
Closures Are Part of a Strategic “Project Fresh” Turnaround
Wendy’s stressed that the closures are not merely cost-cutting measures but part of a larger turnaround initiative known as “Project Fresh.”
Cook told investors the program aims to “improve same-store sales and customer acquisition” by directing franchise investment into profitable locations and remodeling or repositioning select units.
“Closures of under-performing units are expected to boost sales and profitability at nearby locations,” Cook said.
The company has already closed 140 outlets last year, and this next wave underscores the urgency of its restructuring efforts.
What the Closures Mean for Franchisees, Employees, and Customers
For franchise owners and employees, the decision will trigger local evaluations and potential job losses at affected restaurants. However, Wendy’s emphasized that some closed sites could be remodeled or re-tenanted under new operators.
Company guidance estimates the closures will affect roughly 5% of U.S. outlets, impacting local markets but ultimately intended to enhance system performance.
Wendy’s also plans to boost marketing around its signature “fresh, never frozen” offerings, reintroduce value-focused menu items, and invest in restaurant remodels to modernize its image.
Leadership Transition and Future Growth Plans
Wendy’s is currently operating under interim CEO Ken Cook, as the company’s board of directors continues its search for a permanent chief executive.
Board Chairman Arthur Winkleblack said: “The Board continues to work diligently on the CEO selection process. We are working with a leading global executive search firm and are carefully evaluating internal and external candidates to ensure the strongest leadership to guide the Company through its next phase of growth.”
The leadership transition, combined with the Project Fresh turnaround, reflects Wendy’s effort to stabilize operations and regain growth momentum amid a competitive fast-food landscape.
