Wendy’s Plans to Close Hundreds of Locations in Profit Turnaround

Wendy’s is set to close hundreds of its restaurant locations across the United States as part of a strategy aimed at improving profitability. This decision was announced by Ken Cook, the company’s Interim Chief Executive Officer and Chief Financial Officer, who stated that the organization is actively evaluating underperforming restaurants from both financial and customer experience perspectives.

The Dublin, Ohio-based fast-food chain has indicated that this process is ongoing, though specific numbers and locations of the potential closures have not been disclosed. During a recent quarterly earnings call, Cook mentioned that a “mid-single-digit percentage of U.S. restaurants” might be closed, which could translate to hundreds of locations nationwide. The closures are expected to begin at the end of this year and extend into 2026.

Project Fresh Aims for Growth

The potential restaurant closures are part of Wendy’s broader initiative known as Project Fresh, which was outlined in an announcement made in October 2023. This plan is designed to foster growth and create long-term value across Wendy’s U.S. locations. According to a press release, Art Winkleblack, Chairman of the Board, expressed dissatisfaction with the company’s current valuation and emphasized the urgency of putting Wendy’s on a path that benefits franchisees, employees, and shareholders alike.

“Execution is underway and we are confident that Project Fresh will position Wendy’s as the industry leader,” Winkleblack stated. He mentioned that the initiative aims to cultivate an environment where guests enjoy their experience, franchisees take pride in operating their locations, and teams feel excited to be part of the organization.

Wendy’s has a history of adjusting its restaurant footprint; in 2024, the company closed 140 U.S. locations while simultaneously opening 250 new ones. Currently, the fast-food chain operates just under 6,000 locations across the United States.

The company’s ongoing evaluation and restructuring efforts highlight its commitment to optimizing operations and enhancing customer satisfaction. As Wendy’s navigates this challenging landscape, the outcomes of these changes could significantly impact its market position and overall financial health in the coming years.