One of America's Largest Fast Food Chains Plans Significant Closures
Fast food chains have faced challenges recently, driven by shifts toward healthier choices and rising meal costs. The industry's decline in sales and store closures has affected several major brands.
Industry-Wide Struggles in 2024 and 2025
- Jack-in-the-Box and Starbucks shuttered hundreds of locations.
- KFC, Del Taco, and Pizza Hut reported falling sales.
- Sit-down restaurants experienced multiple bankruptcies during 2024.
Wendy's Announces Store Closures
Wendy's is joining other chains by closing a notable number of outlets. Interim CEO Ken Cook shared this during the Q3 earnings call, revealing plans to close a "mid single-digit percentage" of its stores.
“Wendy's is looking to close a mid single-digit percentage of its total stores.” – Ken Cook
With over 5,900 U.S. locations at the end of 2024, this suggests approximately 300 Wendy's restaurants could close soon, following the closure of 140 stores last year.
Outlook and Strategic Steps
Cook remains optimistic about the brand's overall health, noting that underperforming stores are impacting the company. Wendy's plans to renovate existing locations and implement new technology to boost sales at these sites.
Summary
Wendy's plans targeted closures to address underperformance, alongside store renovations and technological upgrades to strengthen its position amid a challenging fast food market.