Wendy's To Close Up To 350 U.S. Restaurants Amid Turnaround Strategy

(RTTNews) - Wendy's (WEN) announced plans to shutter 200 to 350 underperforming U.S. locations as part of a restructuring effort aimed at improving profitability and strengthening franchise operations.

Interim CEO Ken Cook said the closures represent a "mid single-digit percentage" of the chain's roughly 6,000 U.S. stores and will take place through 2026.

Cook said the move will allow franchisees to redirect investment toward better-performing restaurants, boosting efficiency and sales across nearby outlets. Wendy's did not disclose which locations would be affected.

The decision follows the closure of 140 stores last year due to similar performance issues. The company reported a 4.7 percent decline in same-store sales in the latest quarter, falling behind competitors McDonald's, Burger King, and Shake Shack, which all posted growth amid stronger promotions and pricing strategies.

Despite the weak quarter, Cook noted that Wendy's new "Tendys" chicken tenders have seen robust demand, selling out in some markets even before formal advertising began. He said the product marks a promising step toward restoring the brand's strength in the chicken category.

Friday WEN closed at $8.97, up 1.59%, and is trading after hours at $8.99, up 0.22% on the NasdaqGS.