Wendy’s to Close Hundreds of U.S. Restaurants to Boost Profits

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00:00Wendy's to close hundreds of U.S. restaurants to boost profits

00:03Wendy's announced plans to close hundreds of U.S. restaurants in the coming months

00:08as part of an effort to boost profits and make its remaining stores more appealing to customers.

00:14According to the Associated Press, the Dublin, Ohio-based chain said in a Friday investor call

00:19that it would begin closing locations in the fourth quarter,

00:22affecting a mid-single-digit percentage of its U.S. stores.

00:26With 6,011 U.S. locations at the end of the third quarter,

00:30a 5% reduction would mean roughly 300 closures.

00:34When we look at the system today, we have some restaurants that do not elevate the brand

00:38and are a drag from a franchisee's financial performance perspective.

00:42The goal is to address and fix those restaurants, said interim CEO Ken Cook, who took over in July.

00:48Cook said struggling restaurants may be upgraded with new technology or equipment,

00:52transferred to a different operator, or closed entirely.

00:56He emphasized that targeting underperforming stores is intended to improve traffic and profitability

01:01at the remaining locations.

01:04The closures follow the shuttering of 240 Wendy's stores in 2024,

01:08with many of the chain's 55-year-old restaurants deemed outdated.

01:12U.S. fast food chains have faced challenges attracting lower-income consumers as inflation has raised prices.

01:18Wendy's same-store sales fell 4% in the first nine months of 2025 compared with last year.

01:25Revenue dropped 2% to $1.63 billion, and net income fell 6% to $138.6 million.

01:35Cook said $5 and $8 meal deals, similar to those offered by McDonald's, have helped drive some traffic.

01:41But the chain plans to shift its marketing to highlight value and ingredient freshness to attract new customers.

01:48Wendy's shares fell 7% on Friday and were down 5% on Monday afternoon.