Wendy's announces sweeping closures of hundreds of restaurants across US starting in late 2025. What is the reason behind major shake-up?

Wendy’s to Close Hundreds of U.S. Restaurants by 2026

Wendy’s has announced plans to shutter several hundred underperforming locations across the United States by 2026. The move is part of a broader effort to restructure operations and improve profitability system-wide.

The decision follows the closure of 140 outlets last year, signaling a larger strategy to combat falling domestic sales amid intense industry competition. By trimming less profitable branches, Wendy’s aims to focus on high-performing restaurants and streamline its business model.

"Wendy’s plans to close hundreds of underperforming U.S. locations by 2026 as part of a turnaround strategy. This move aims to strengthen the system and boost profitability at remaining restaurants."

Background and Industry Impact

Analysts suggest this shake-up reflects broader challenges in the fast-food sector, where rising costs and shifting consumer preferences are forcing major brands to refine operations and focus on core markets.

The closures are expected to begin in late 2025 and continue through the following year, reshaping Wendy’s U.S. footprint significantly.

Author’s summary: Wendy’s will close several hundred U.S. outlets by 2026 in a major restructuring to improve performance and strengthen its position in a competitive market.

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The Economic Times The Economic Times — 2025-11-08