Wendy's Plans to Close About 300 Stores Nationwide by Late 2025
Wendy's, the fast-food chain based in Dublin, Ohio, currently operates around 6,000 locations across the United States. Just a year after closing 140 restaurants, the company announced plans to shutter an additional "mid single-digit percentage" of its stores, which translates to roughly 240 to 360 closures nationwide.
Details from the Earnings Call
Interim CEO Ken Cook shared during a quarterly earnings call on November 7 that some Wendy's locations are underperforming financially and do not contribute positively to the brand's image. He explained the company’s approach to address these issues:
"When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective. The goal is to address and fix those restaurants."
The solutions could involve technological or equipment upgrades, changing franchise operators, or, in certain cases, closing the restaurants altogether.
Expansion and Closure Balance
Wendy's spokesperson Heidi Schauer told USA TODAY that about 250 to 300 new locations were expected to open in 2024. However, following a strategic review, the company now anticipates closures to closely match openings, resulting in essentially flat net unit growth for the year.
"After our strategic review, we now expect a similar number of closures as openings, so we expect net unit growth in 2024 to be roughly flat."
Timing and Michigan Locations
- Closures are expected to start in the fourth quarter of 2025.
- Wendy's has not released a list of the locations to be closed.
- The company operates 218 Wendy’s restaurants in Michigan, according to its official website.
Investors estimated about 300 store closures during the earnings call, aligning with the company's announced "mid single-digit" percentage reduction of total locations.
Author's summary: Wendy's will close approximately 300 underperforming restaurants nationwide by late 2025, balancing closures with new openings to maintain stable overall store numbers.