Wendy’s is preparing to close a significant number of its US restaurants as part of a major turnaround effort. Interim CEO Ken Cook said on Friday that a “mid single-digit percentage” of the roughly 6,000 Wendy’s locations in the United States are likely to close, which translates to an estimated 200 to 350 restaurants.
The company is targeting units that have been “consistently underperforming” and weighing down the brand’s overall results. The closures are scheduled to begin this year and continue through 2026.
Cook explained that the strategy is designed to strengthen the overall system by allowing franchisees to redirect their money and focus into better-performing locations.
Removing weaker restaurants is expected to improve both sales and profitability at nearby Wendy’s outlets. The company did not provide a detailed list of which locations will be affected.
This new wave of shutdowns follows last year’s closure of about 140 restaurants, which Wendy’s also attributed to ongoing underperformance. The chain could use some positive momentum: same-store sales in the US dropped 4.7% in the most recent quarter, while competitors like McDonald’s, Burger King and Shake Shack reported gains as customers responded more favorably to their promotions and marketing campaigns.
Chicken “Tendys” offer a rare bright spot
Even as overall results lag, Cook pointed to one area of optimism: Wendy’s new chicken tenders, branded as “Tendys.”
He said the launch has been met with strong demand, with some locations selling out of the item before the company even began advertising it.
Wendy’s is hoping that the early success of Tendys can help rebuild its reputation in the chicken category. “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.