In a significant restructuring move, Wendy's has announced plans to close hundreds of underperforming restaurants across the United States, though Canadian operations remain unaffected and continue to expand.
Major US Restaurant Closures Announced
Interim CEO Ken Cook revealed during the company's recent Q3 earnings call that Wendy's will shutter between 250 and 300 locations throughout the United States. This represents approximately 5% of the chain's 6,000 US restaurants and follows the closure of 240 locations last year.
The closures are part of what the company calls "system optimization efforts" aimed at addressing underperformance issues. Cook explained that specifically targeted are restaurants that have been "consistently underperforming" and negatively impacting the chain's overall financial performance.
Canadian Operations Thriving Despite US Challenges
Canadian Wendy's enthusiasts can rest assured that their access to Baconators and Dave's Doubles remains secure. A company spokesperson confirmed to the Toronto Sun that the closures do not impact Canadian restaurants.
In fact, the Canadian division appears to be thriving. "This year in Canada, we remain on track to deliver our highest number of restaurant openings in the past decade," the spokesperson stated, indicating robust growth in the Canadian market despite challenges south of the border.
Financial Performance and Turnaround Strategy
The decision comes as Wendy's faces declining performance metrics in the United States. During the first nine months of 2025, the company reported that US same-store sales dropped 4% compared to the same period last year.
This sales decline contributed to overall revenue falling 2% to $1.6 billion, while net income decreased 6% to $138.6 million. The financial strain was reflected in the company's stock performance, with shares dropping 7% following the Q3 earnings call and remaining down 46% for the year.
Wendy's is implementing "Project Fresh" as part of its comprehensive turnaround strategy. This initiative includes:
- Closing underperforming locations to boost nearby restaurant performance
- Refreshing remaining popular locations
- Cutting approximately $20 million in operating costs
- Enhancing marketing to emphasize value and ingredient freshness
The company has found some success with its $5 and $8 meal deals in attracting customers back to US stores, but acknowledges the need to improve customer acquisition efforts.
The restaurant closures are scheduled to begin during the fourth quarter of 2025. While specific locations haven't been announced, the company indicated that the targeted restaurants are those consistently dragging down the chain's overall performance.
Cook emphasized that these strategic closures should "strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants," ultimately improving the brand's competitive position in the challenging fast-food market.
