After closing 240 locations in 2024, Wendy’s plans even more shutdowns amid profit slump

Wendy’s has seen sales fall while competitors like Burger King and McDonald’s have managed to increase traffic at their restaurants as they try to attract more customers. Although it has seen some progress with a strategic plan implemented earlier this year to revitalize the brand, the fast food chain based in Dublin, Ohio, has decided to close more locations going forward, on top of closing 240 locations in 2024.

Interim CEO Ken Cook announced during an earnings call last week that the company could shutter “a mid-single digit percentage” of its US restaurants after a review is completed. Given that the brand has around 6,000 locations, this could translate into roughly 300 closures across the nation.

Which Wendy’s locations will be closing

Cook didn’t give specifics about which restaurants the company would be closing, but it will focus on those that are underperforming. The hope is that this will help drive more traffic, and profitability, at other locations.

“We have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” he told investors. “The goal is to address and fix those restaurants.”

“In some cases, that’s going to mean deploying operational improvements, deploying additional technology or equipment,” the CEO explained. “In other cases, it will mean transferring those restaurants to a different operator who’s better suited to be successful in that restaurant.”

The company has seen some success in drawing in low-income diners with its $5 and $8 meal deals, but Cook said that it needs to improve its appeal to new customers. He said that Wendy’s will focus its marketing on emphasizing the freshness of its ingredients and value.

“We have some work to do to reestablish Wendy’s as a leader in quality and freshness in the industry, and by doing that, we’re confident we’re going to drive [average volume units] higher,” he said.

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