Wendy's is preparing to close between 200 and 350 restaurants across the United States beginning late next year, marking one of the most significant restructurings in the company's recent history. The closures are part of a turnaround plan aimed at improving profitability after several quarters of weakening sales and growing competition in the fast-food sector.
The decision follows internal performance reviews that identified a segment of Wendy's 6,000 domestic stores as consistently underperforming. The move is tied to a corporate initiative known as Project Fresh, which was launched in October 2025 and focuses on evaluating whether individual restaurants are contributing to or dragging on the broader system's financial health. The company has stated that some stores may be remodeled or transferred to new franchise operators, while others will be closed permanently.
Wendy's reported declining same-store sales of about 4.7% in the U.S. during its third quarter of 2025, according to company earnings referenced by CNN. The company recorded revenue of roughly $549.5 million and net income of $44.3 million for the period, figures that underscored the urgency behind its restructuring plans. The performance lagged competitors including McDonald's and Burger King, both of which reported same-store sales growth during the same timeframe.
Executives have emphasized that the closures will largely target locations in lower-traffic areas or older sites with physical limitations that restrict drive-through or digital ordering capacity. Such characteristics have become increasingly important as consumers shift toward mobile ordering and third-party delivery services. Wendy's has acknowledged it has been slower to adapt to digital infrastructure than some of its peers.
Many of the affected stores are franchise-operated, meaning the financial burden of closures will fall unevenly across the chain. Franchise groups are expected to work with corporate leadership to determine whether certain restaurants can be reconfigured to meet updated standards. The company has not disclosed how many employees may be displaced, though it has indicated that some workers may be reassigned to nearby stores.
The restructuring comes after a previous wave of closures in 2024, when around 140 U.S. restaurants were removed from the system for similar performance-related reasons. Analysts note that the latest cuts reflect a broader strategic shift. Instead of focusing on expanding its restaurant footprint, Wendy's is now prioritizing average unit volume and operational efficiency.
Interim Chief Executive Ken Cook said the company needs to address stores that are holding back systemwide performance. "When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective," Cook said. He added that Project Fresh is intended to direct investment toward outlets with stronger market potential while repositioning the brand for heightened competition.
