Wendy's Plans Nationwide Store Closures in Late 2025
Wendy's, the Ohio-based fast-food chain with roughly 6,000 locations across the U.S., announced plans to close approximately 300 stores by late 2025. This follows last year’s closure of 140 restaurants.
Details from the November 7 Earnings Call
Interim CEO Ken Cook stated on the quarterly earnings call that Wendy's would be shutting down a "mid single-digit percentage" of its stores, translating to about 240 to 360 closures. An investor estimated around 300 locations would close during the call.
"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."
Plans for Underperforming Locations
- Some restaurants will receive upgrades in technology and equipment.
- Struggling stores may be transferred to new operators.
- Others will be permanently closed.
New Openings Versus Closures
Wendy's expected to open 250 to 300 new locations in 2024. However, the company now anticipates closures will roughly match openings, resulting in flat net 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."
Michigan Locations
According to Wendy’s official website, there are currently 218 Wendy's restaurants operating in Michigan. No specific closures in Michigan have been announced.
The planned closures will begin in the fourth quarter of 2025, but Wendy's has yet to release a list of the affected stores.
Summary: Wendy's will close about 300 underperforming stores nationwide in late 2025 while balancing new openings, maintaining flat overall growth and aiming to enhance franchisee performance.