Major Fast Food Chain Shutting Hundreds of U.S. Locations
Wendy’s is preparing to shut down hundreds of its U.S. locations. This decision impacts a “mid single-digit percentage” of the chain’s approximately 6,000 outlets. Interim CEO Ken Cook announced this plan, indicating closures will affect between 200 to 350 restaurants over the next few years.
Details of Wendy’s Location Closures
The closures will commence this year and extend through 2026, although specific locations have yet to be disclosed. Cook explained that these closures involve restaurants that are “consistently underperforming” and hamper the overall performance of the chain.
Previous Closures and Financial Performance
In December 2024, Wendy’s previously closed 140 outlets nationwide, including at least 12 locations in Michigan. The chain reported a 4.7% decline in same-store sales, largely due to several factors:
- Commodity inflation
- Decreased customer traffic
- Rising labor costs
In contrast, competitors such as McDonald’s, Burger King, and Shake Shack recently reported positive earnings as they introduced more affordable menu options.
Future Strategies and Optimism
Despite recent challenges, Cook remains hopeful about the brand’s future. He cited a successful launch of new chicken tenders and an ongoing initiative called Project Fresh. This comprehensive plan focuses on:
- Brand revitalization
- Operational excellence
- System optimization
- Capital allocation
Cook emphasized the importance of executing these operational and brand initiatives. The goal is to enhance average unit volume (AUV) growth in the U.S., creating greater value for franchisees and shareholders alike.
