One Of America's Biggest Fast Food Chains Is Closing Hundreds Of Restaurants
As consumers opt for healthier meals and rising costs continue to hurt the industry, several major fast food companies are facing financial pressure. The downturn has now reached one of America’s most famous chains.
Over the past year, headlines have highlighted the ongoing struggles in the fast food sector. Brands such as Jack-in-the-Box and Starbucks have announced the closure of hundreds of outlets, while KFC, Del Taco, and Pizza Hut have reported falling sales. This trend continues after a difficult 2024 for full-service restaurant chains, many of which went bankrupt within months.
Wendy’s has now joined the growing list of companies reducing their footprint. During the company’s third-quarter earnings call, interim CEO Ken Cook revealed that the brand plans to close a “mid single-digit percentage” of its restaurants in the United States.
“Wendy’s is looking to close a mid single-digit percentage of its total stores,” said Ken Cook, interim CEO, during the Q3 earnings call, as reported by CNN.
Since Wendy’s finished 2024 with just over 5,900 U.S. locations, the expected closures could reach about 300 stores. This follows a smaller wave of shutdowns in the previous year, when 140 locations were closed.
Despite the closures, Cook emphasized that the company remains strong overall, noting that only a small share of underperforming restaurants had been affecting brand performance. Wendy’s also plans to renovate older outlets and integrate new technologies to boost efficiency and sales.
Author’s Summary
Wendy’s will reportedly close around 300 underperforming restaurants in the U.S. while investing in upgrades and new technology to strengthen its overall business.