Wendy's to close hundreds of underperforming restaurants

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After another downbeat quarter in terms of U.S. sales, Wendy’s (WEN [https://seekingalpha.com/symbol/WEN]) is shuttering hundreds of locations that drag down the company’s performance, Ken Cook, CFO and interim CEO of the fast-food chain, announced.

The decision came after the company’s Q3 results, released on Friday, indicated a ~4.7% YoY decline in U.S. same-restaurant sales compared to a ~3.6% YoY decline in the preceding quarter and a 0.2% YoY growth in the prior-year period. [https://seekingalpha.com/news/4518453-wendys-non-gaap-eps-of-0_24-beats-by-0_04-revenue-of-549_5m-beats-by-14_99m]

“We are working with our U.S. franchisees to evaluate each and every underperforming restaurant in our system from both a financial and a customer experience perspective,” Cook said during Wendy’s earnings call.

“In terms of system optimization, based on the information we have today, I'd estimate around a mid-single-digit percentage of U.S. restaurants would end up closing,” he added, noting that closures would begin this year and would continue into 2026.

With Wendy’s operating nearly 6,000 locations across the U.S., the decision is expected to impact about 200–350 outlets.

“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said, adding, “closures of underperforming units are expected to boost sales and profitability at nearby locations.” [https://seekingalpha.com/article/4840310-the-wendys-company-wen-q3-2025-earnings-call-transcript]

MORE ON WENDY'S

* The Wendy's Company 2025 Q3 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4840748-the-wendys-company-2025-q3-results-earnings-call-presentation]
* The Wendy's Company (WEN) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4840310-the-wendys-company-wen-q3-2025-earnings-call-transcript]
* Wendy's: The Selloff Has Gone Too Far With A Turnaround Plan Kicking Off [https://seekingalpha.com/article/4833342-wendys-the-selloff-has-gone-too-far-with-a-turnaround-plan-kicking-off]
* Wendy’s signals shift to AUV growth and anticipates over 9% international net unit growth in 2025 amid Project Fresh rollout [https://seekingalpha.com/news/4518857-wendy-s-signals-shift-to-auv-growth-and-anticipates-over-9-percent-international-net-unit]
* Wendy's delivers a suprise beat as international sales offset soft U.S. markets [https://seekingalpha.com/news/4518481-wendys-delivers-a-suprise-beat-as-international-sales-offset-soft-us-markets]