Wendy’s plans to close hundreds of U.S. restaurants in 2025–26

Underperforming restaurants drive nationwide closures

Wendy’s is making a bold move that could reshape its presence across the U.S. Wendy’s says it expects to close a mid-single-digit share of its U.S. restaurants, starting in late 2025.

Behind the closures lies a strategy aimed at strengthening the brand, but what does it mean for workers, customers, and the surrounding neighborhoods?

Keep reading to uncover the details and understand why this fast-food giant is taking such a dramatic step.

Estimated scope of closures

On its Q3 2025 call, Wendy’s stated that closures could reach a mid-single-digit percentage of U.S. restaurants, which would likely translate to several hundred locations.

The company did not publish a definitive list of specific restaurants slated for closure at the time of the announcement. They might do so in the near future.

Why the closures are happening

Executives attributed the decision to ongoing performance challenges at certain units. They noted that some restaurants are not generating strong enough financial results to justify ongoing operation.

Wendy’s leadership described these underperforming restaurants as a drag on overall performance. This signals a strategic effort to stop supporting units that are not contributing positively to the system’s financial health.

Timeline for the shutdowns

According to the earnings call, the closure effort was to begin in late 2025. It’ll continue into 2026 in phases rather than all at once.

This staggered approach is meant to give restaurant owners, employees, and communities time to adjust. Because the company has not yet identified exact stores, local notices will be the first confirmation for most customers when closures occur.

Past closures in 2024

In 2024, Wendy’s also moved to prune weaker restaurants, including a plan to close 140 poor-performing units in Q4. Those closures were justified by executives.

They were a way to cut outdated locations with low average unit volumes and margins. The 2024 action set the context for the larger and more strategic closure plan, which was revealed in late 2025.

Sales performance context

Through the first nine months of 2025, Wendy’s reported U.S. same-restaurant sales down 3.7% year to date. Systemwide sales also saw a modest decline.

This reflects ongoing traffic and sales challenges at restaurants that have been open for at least a year. This weaker restaurant performance contributed to the leadership’s decision to pursue more closures and operational changes.

Project Fresh turnaround strategy

Wendy’s is implementing a comprehensive turnaround plan, called Project Fresh, to address several key issues. These include underperforming locations, brand revitalization, and operational optimization.

This strategy was outlined in the same earnings call that detailed closures. This positions the move as part of a strategic overhaul rather than a reactionary cost cut.

Lower‑income consumer pressure

Company commentary during the earnings call and subsequent reporting noted that lower‑income consumers cutting back on dining out has affected sales performance. Leadership acknowledged pressure on spending among budget‑conscious customers.

This has been a challenge for several months. These trends were cited as one factor in assessing the performance of individual restaurants.

Competition and industry landscape

In Q3 2025, major competitors reported gains in U.S. comparable sales, underscoring the tough nature of the value-driven market. This highlights the competitive pressure in the fast‑food sector.

Executives acknowledged that improving performance at the system level requires adapting to competitive forces. It also involves catering to the evolving expectations of consumers in a crowded quick-service environment.

Focus on franchisee alignment

Wendy’s system includes many restaurants operated by independent franchisees. The company noted that closing underperforming locations will help improve the overall health of its network.

It is worth noting that specific operational decisions are made in consultation with franchisees. The company emphasized collaboration to ensure stronger restaurants receive investment and operational support.

Impact on restaurant counts

Under the planned closures, the overall number of U.S. restaurants is expected to decline modestly as weaker units are removed from the system.

Net restaurant counts will depend on how many openings offset closures in higher-performing trade areas.

Strategy for remaining restaurants

Wendy’s indicated that closures are aimed at strengthening the performance of the remaining system by allowing better capital allocation. This includes reinvesting in newer, higher-performing restaurants, as well as technology upgrades.

The closure strategy is part of a larger operational overhaul aimed at helping restaurants compete for a larger share of customer traffic.

In other news, these department store chains plan widespread closures through 2026.

Customer experience and brand goals

Executives stated that improving the customer experience and brand health across the system is a priority tied to closures. Wendy’s is now focusing on restaurants with stronger performance metrics and investing in modernization.

Wendy’s main aim now is to offer a more consistent and competitive experience for diners going forward.

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This slideshow was made with AI assistance and human editing.

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