Wendy’s Plans Major U.S. Closures After Weak Sales Quarter
Wendy’s is preparing to close a notable portion of its U.S. restaurants after reporting weaker-than-expected results. In its third-quarter update, the company said it will shut a “mid single-digit percentage” of its U.S. locations, which amounts to roughly 200 to 300 restaurants out of about 6,000 nationwide. The closures will begin later in 2025 and continue through 2026, according to CNN.
Leadership linked the decision to stores that have consistently underperformed and no longer meet financial expectations. Franchisees have been encouraged to assess each location’s long-term potential. Some units may receive operational or technology upgrades to improve speed and service, while others will ultimately close so resources can be redirected toward stronger-performing restaurants.
The move falls under Wendy’s turnaround initiative known as Project Fresh. The plan was announced earlier in 2025 and is built around four priorities: brand revitalization, operational improvements, optimizing the U.S. restaurant footprint, and smarter capital allocation. These priorities were reiterated as the company released its third-quarter financial results.
Those results underscore why the company is acting now. Wendy’s reported a 4.7% decline in U.S. same-restaurant sales in the quarter, reflecting weaker traffic and challenging cost pressure. Global systemwide sales fell 2.6% during the same period, while international systemwide sales rose 8.6%. The stronger international performance highlighted a contrast with increasingly competitive conditions in the U.S. market.
A full list of locations set to close has not been released, and individual markets are still waiting for updates. Local reports in states such as New Jersey and Michigan confirm that franchisees have not been given specific details yet, and decisions are expected to roll out gradually based on performance reviews.
Wendy’s has already been tightening its footprint over the past year. In 2024, the company closed about 140 outdated or low-performing locations as part of an earlier stage of its system evaluation. That effort set the foundation for the more extensive closure strategy now underway.
For customers, changes will depend on where they live. Some regions may lose a nearby restaurant, while others could see improvements to existing locations. Franchisees and investors may experience a shift in focus—from rapid expansion to improving the performance and profitability of existing stores.
The company believes this strategy will leave it better positioned in the long run. With underperforming units trimmed and targeted investments flowing to stronger locations, Wendy’s leadership expects the brand to regain momentum in a crowded quick-service market.
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