Fast-food giant Wendy’s is making headlines after announcing plans to shutter hundreds of its U.S. restaurants over the next two years, marking one of the largest chain closures in the industry this year. The move comes as the company battles declining sales, rising costs, and shifting consumer habits that are reshaping the landscape of American dining.
The Scale of the Closures
During a recent quarterly earnings call, Wendy’s interim CEO Ken Cook revealed that the chain will close a “mid single-digit percentage” of its roughly 6,000 U.S. locations. Industry analysts estimate this could amount to between 240 and 360 stores, with some reports citing a figure as high as 350 closures. The closures are expected to begin in late 2025 and continue through 2026.
Wendy’s has not released a specific list of locations slated for closure, but the company says the decision is focused on underperforming restaurants that are dragging down franchisee profitability and brand reputation. “We have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” Cook said.
Why Wendy’s Is Closing Stores
The closures are part of a broader restructuring strategy aimed at improving profitability and streamlining operations. Wendy’s reported a
3% decline in U.S. sales for the third quarter of 2025 compared to the same period last year, with global sales down
2.6%. The company also saw a
4.7% drop in same-store sales, largely due to reduced customer visits.
Industry experts point to several factors behind the closures:
-
Rising inflation and food costs have squeezed margins, with
91% of restaurant operators reporting higher food expenses in 2025.
-
Labor costs have surged, with some chains seeing payroll increases of up to
14%.
-
Changing consumer habits—many Americans are eating out less due to economic pressures, layoffs, and higher living costs.
What This Means for the Fast-Food Industry
Wendy’s is not alone in its struggles. Other major chains, including Jack in the Box and Red Robin, have also announced significant closures in 2025. Jack in the Box plans to close up to 200 locations, while Red Robin is shutting down around 70 underperforming stores.
The trend reflects a broader industry crisis, with many fast-food brands facing similar challenges. Analysts predict a wave of consolidation, with chains focusing on digital ordering, delivery, and smaller-format stores to adapt to the new normal.
What’s Next for Wendy’s
Wendy’s says the closures are not just about cutting costs—they’re also about positioning the company for future growth. The chain plans to replace many of the closed locations with new restaurants in better areas, aiming for improved sales and profitability.
“We have designed this initiative to ensure that, over time, many of these units will be replaced by new restaurants at better locations with significantly improved sales and profitability,” said former CEO Kirk Tanner.
Impact on Customers and Employees
The closures will affect thousands of employees and customers across the country. While Wendy’s has not provided details on job losses, the move is likely to result in significant workforce reductions. Customers in affected areas may see changes in menu prices, with experts predicting that menu costs will remain elevated in 2026 due to ongoing supply and wage pressures.
The Big Picture
The Wendy’s closures are a stark reminder of the challenges facing the fast-food industry. As economic pressures mount and consumer habits evolve, even the biggest names in the business are being forced to adapt or risk falling behind.
For Wendy’s, the road ahead will be about balancing cost-cutting with innovation, ensuring that the brand remains relevant in a rapidly changing market.
Sources
1. Major Fast Food Chain To Close Hundreds Of Locations - Patch
2. Hamburger Chain Restaurant Closures: Will 300 Locations Really Shut Down by 2026?
3. Popular hamburger chain closing dozens of restaurants - TheStreet
4. 76 Fast Food Closures Looming? Industry Crisis Hits!
5. Wendy's To Close 350 Restaurants — Why Katy Perry's Manager Is ...
6. hamburger chain restaurant closures hamburger chain closures burgers near me: Latest News & Videos, Photos about hamburger chain restaurant closures hamburger chain closures burgers near me | The Economic Times - Page 1
7. These Restaurant Giants Are Closing Locations In 2025 - YouTube
8. hamburger chain restaurant closures: Latest News & Videos, Photos about hamburger chain restaurant closures | The Economic Times - Page 1
9. Affirmation Widget *
10. 30 Fast Food Chains Closing Restaurants Right Now
11. hamburger chain closures: Latest News & Videos, Photos about hamburger chain closures | The Economic Times - Page 1
12. Thousands of Jobs Ended: 10 Famous Fast Food Chains Shutting Down Restaurants - Right Now in America
13. Major Burger Chain Abruptly Closes 79 Locations - Classic Country WPYB
