Wendy's to Close Hundreds of US Restaurants Amid Falling Sales and Rising Competition
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Fast-food chain Wendy's is set to shut down a significant portion of its US locations, with around 200-350 restaurants expected to close due to declining sales and increased competition. The decision was announced during the company's November 7 earnings call, citing a 4.7% drop in same-restaurant sales and a 2.6% revenue decline on a constant-currency basis. This move is part of Wendy's transformation strategy, dubbed "Project Fresh," aimed at closing underperforming units, directing franchisees to invest in stronger locations, and streamlining the brand's value proposition. Interim CEO Ken Cook stated that the closures will help boost sales and profitability at nearby locations. The decision comes as Wendy's faces pressure from rivals such as McDonald's and Burger King, which posted positive growth during the same period. The company is also working on appointing a permanent CEO, with Chairman Arthur Winkleblack stating that the board is diligently evaluating internal and external candidates to ensure the strongest leadership for the company's next phase of growth. Wendy's has already closed 140 outlets last year, and the newly announced closures underscore the urgency of its transformation efforts. The company expects to start the closures in late 2025 and may continue into 2026, but did not reveal the exact locations that will be affected.
