On November 7, 2025, Wendy’s announced a sweeping plan to close 350 underperforming stores in the U.S. by 2026. The decision, revealed by interim CEO Ken Cook, sent ripples through the fast-food industry as the chain took its largest step back in over five years. As many as 490 locations could be shut in a two-year window, marking a drastic shift in the company’s strategy. But what prompted such a major move from a brand once known for aggressive expansion? Could it signal deeper issues within the fast-food giant?
Stay tuned to uncover the struggles behind this bold decision and what’s next for the future of Wendy’s.
The Drive Behind Project Fresh
Ken Cook, Wendy’s interim CEO, attributed the closures to a sharp decline in same-store sales, down 4.7% in Q3 2025.
Increased traffic challenges and rising costs have pushed Wendy’s to recalibrate. The company plans to shift $20 million from new-store development in 2025 to bolster marketing efforts and invest in technology to rejuvenate its remaining locations.
What the Closures Mean for Customers
The closures will impact a mid-single-digit percentage of Wendy’s nearly 6,000 U.S. stores, leading to fewer locations in some communities.
With these closures, many Americans will lose their closest Wendy’s, forcing them to turn to competitors or prepare meals at home. The remaining stores will likely see increased sales, but at the expense of convenience for former customers.
Assessing Franchise Impact
Alongside closures, Wendy’s is undergoing a portfolio review, with potential store transfers or upgrades on the table.
Ken Cook noted that many of the shuttered locations were “dragging down” the franchise system. Wendy’s is now focused on optimizing unit volumes rather than growing the number of units, ensuring that remaining outlets operate efficiently.
Marketing and Tech Spending Overhaul
In an effort to modernize, Wendy’s is reallocating funds previously set aside for new builds to improve technology and marketing.
Digital menu boards and app enhancements are among the upgrades, along with the introduction of the “Tendys” premium chicken tenders. Despite selling out of stock at some locations before national advertising, Wendy’s is counting on new menu items to boost drive-thru sales.
International Growth Amid U.S. Retreat
While Wendy’s reduces its U.S. footprint, international expansion continues. The company recently opened its first stores in Ireland and Australia, with strong initial sales.
In the third quarter of 2025, global comparable sales rose 3%, and Wendy’s has secured agreements for over 320 new locations worldwide, including a major push in Central Mexico.
Job Losses and Economic Impact
The closure of 350 stores could lead to the loss of 7,500–8,000 jobs, primarily affecting hourly crew members and shift leaders.
With an estimated $60–100 million in lost wages annually, these closures will further strain local economies, especially in smaller markets. Many employees may be able to transfer to nearby locations, but many part-timers will face job insecurity.
The Economic Pressures on Fast Food
Wendy’s decision to close locations is tied to broader economic trends. Rising labor and food costs, combined with weaker customer traffic, have made it harder to maintain profit margins.
In September 2025, “food away from home” prices rose 3.9%, outpacing wage gains in some areas, further complicating the operating environment for fast-food chains.
The Impact of Price Hikes on Dining Habits
Between 2014 and 2024, fast-food prices soared 39% to 100%, with Wendy’s among the chains raising prices by about 55%.
As dining out becomes increasingly expensive, more families are opting to cook at home, leading to a 1% decline in fast-food traffic. This shift in consumer behavior further exacerbates the pressure on value-driven chains like Wendy’s.
Changing Dining Habits Among Consumers
With fast food becoming less affordable, more families are turning to home cooking, reducing their drive-thru visits.
This trend is particularly evident among lower-income households, where rising rent and grocery costs are pushing families to shift their weekly routines from eating out to preparing meals at home. This shift is eroding Wendy’s once-steady customer base.
Environmental and Community Effects
Restaurant closures may reduce local traffic and energy use, but the presence of empty storefronts raises concerns about urban blight.
Wendy’s is losing an estimated $350 million annually from these closures, which could delay sustainability efforts. However, new and upgraded locations are often more energy-efficient, potentially reducing the environmental footprint per meal.
A Changing Fast-Food Landscape
The Wendy’s closures reflect a wider trend in the fast-food industry.
Brands like Burger King and Starbucks have also cut back, signaling that the era of limitless growth and ultra-low prices may be ending. With price hikes and shrinking store counts, many consumers are beginning to question whether fast food still offers the convenience and affordability it once did.
Competitors Poised to Capitalize
McDonald’s and Burger King are likely to benefit from Wendy’s closures, capturing displaced customers in overlapping areas.
Additionally, grocery chains are seeing more foot traffic as budget-conscious families cook more at home. Stronger Wendy’s franchisees might also seize opportunities to expand or acquire struggling units as part of the consolidation process.
What’s Next for Investors and Consumers
The success of Wendy’s Project Fresh will depend on whether it can reverse its negative same-store sales and stabilize franchisee health by 2028.
For consumers, store-by-store experiences will vary, and app users should keep an eye out for deals and compare prices with competitors. Investors will look closely at traffic trends in 2026 to gauge the future success of the brand.
Can Wendy’s Reinvent Itself?
Wendy’s Board chair Arthur Winkleblack remains optimistic, stating that Project Fresh aims to rejuvenate the brand by focusing on profitable growth.
The next 18–24 months will be crucial in determining whether the company’s strategy of closing stores, upgrading technology, and reworking marketing efforts will restore its standing as a global fast-food leader.
Sources:
Wendy’s Announces Strategic Plan Project Fresh and System Optimization Including U.S. Store Portfolio Review.” The Wendy’s Company press release, Oct 2025.
“Wendy’s Is Set to Close Hundreds of Restaurants Across the U.S. by the End of 2025.” People, Nov 2025.
“Wendy’s to Close Hundreds of U.S. Restaurants as Sales Slump.” San.com / Associated press‑style reporting, Nov 2025.
“Wendy’s Could Close Hundreds of Restaurants as Same‑Store Sales Decline and Competitive Pressure Grows.” Restaurant Dive, Nov 2025.