One Of America's Biggest Fast Food Chains Is Closing Hundreds Of Restaurants
Fast food chains have faced significant challenges recently, impacted by consumers opting for healthier choices and rising meal costs. This downturn has notably affected some of the most popular names in the industry.
Industry-Wide Struggles in 2024 and 2025
This year has highlighted the sector's difficulties, with major chains like Jack-in-the-Box and Starbucks closing hundreds of outlets. Others, including KFC, Del Taco, and Pizza Hut, have reported declines in sales. These issues follow a tough 2024 for sit-down restaurant chains, during which several well-known brands declared bankruptcy within months of each other.
Wendy's Announces Store Closures
Joining this trend, Wendy's revealed plans to shut a portion of its locations. The news came from interim CEO Ken Cook during the company’s Q3 earnings call. He stated Wendy's intends to close a "mid single-digit percentage" of its stores, as reported by CNN.
With just over 5,900 U.S. locations at the end of 2024, this suggests approximately 300 stores could close. This move follows last year's smaller reduction when Wendy's closed 140 locations.
“Wendy's as a whole is healthy, and a smaller percentage of underperforming stores were dragging down the brand,” said Cook.
Plans for Store Renovation and Technology Upgrades
The company also plans to renovate existing stores and introduce new technology aimed at boosting sales in the underperforming locations.
Summary
Wendy's is strategically closing some underperforming locations while investing in store improvements and technology to strengthen its overall brand and sales performance.