Wendy’s announces hundreds of closures in the U.S.

Wendy’s plans to shutter hundreds of restaurants across the United States as part of a sweeping turnaround effort aimed at improving profitability and reversing a decline in domestic sales.

Interim Chief Executive Ken Cook said Friday that a “mid single-digit percentage” of Wendy’s roughly 6,000 U.S. restaurants could close over the next two years — an estimated 200 to 360 locations. The closures will focus on outlets that have been “consistently underperforming” and weighing down the brand’s overall results, Cook told analysts during a quarterly earnings call.

“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said in a statement. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”

The company has not released a list of affected restaurants. The process is expected to begin in the fourth quarter of this year and continue through 2026, USA TODAY reported.

Cook said the chain is also exploring alternatives to closures in some markets, such as upgrading technology, improving equipment or transferring restaurants to stronger operators.

The move marks another round of cutbacks for the Ohio-based fast-food giant, which shut down 140 restaurants last year because of similar performance issues.

Despite the company’s struggles in the U.S., Cook pointed to encouraging signs in other areas. He highlighted strong demand for Wendy’s new chicken tenders, dubbed “Tendys,” which proved so popular that some locations sold out before the product was even advertised.

“We’re looking forward to continuing that momentum, and this is an encouraging first step as we look to reestablish our leadership position in chicken,” Cook said.

According to CNN, the closures come as Wendy’s faces stiff competition from fast-food rivals that have continued to grow even in a challenging economic climate. The chain reported a 4.7 percent drop in same-store sales across the U.S. in the most recent quarter, while competitors including McDonald’s, Burger King and Shake Shack all posted growth, driven by promotions and marketing campaigns that helped attract customers.