Wendy's Announces Plans to Close Hundreds of Restaurants
Wendy's has recently revealed financial challenges during a quarterly earnings call, announcing a plan to close numerous underperforming locations. The company, once famous for its "Where's the beef?" campaign, is aiming to streamline its national presence.
Details on Restaurant Closures
Interim CEO Ken Cook informed investors that the closures will start this year and continue into 2026. The estimated number of restaurants set to close ranges between 240 and 360. Currently, Wendy's operates about 6,000 restaurants across the United States.
Industry Position and Sales Performance
Unlike competitors Burger King and McDonald's, which reported profitable quarters, Wendy's experienced a 4.7% drop in sales. Closing struggling restaurants may help the company redeploy capital to more successful locations.
Menu Success Amid Challenges
Despite overall sales declines, one new menu item, the "Tendy's" chicken tenders, has exceeded sales expectations. Some locations sold out of the product before it was officially promoted.
“The company plans to begin closing many locations that aren't meeting sales expectations this year, with more slated to meet the same fate in 2026.” — Ken Cook, Interim CEO
Wendy's move to shutter underperforming outlets signals a strategic shift to focus resources on stronger stores amid a tough market.