Wendy’s announced plans to close a “mid-single-digit percentage” of its underperforming U.S. store locations, or 200 to 350 of some 6,000 locations, during its quarterly earnings call on Friday.
The news comes as the fast-food giant reports third-quarter profits of $44.3 million and $549.5 million in revenue, beating analyst expectations by 2.71%. The company’s adjusted earnings per share (EPS) came in at 24 cents, versus expectations of 20 cents. International business delivered strong system-wide sales growth, with international net unit growth expected to come in over 9% in 2025.
Shares in Wendy’s Co. (NASDAQ: WEN) were up about 2% in midday trading on Friday, after Wendy’s stock surged 11.66% in pre-market trading.
On the earnings call, Interim CEO and CFO Ken Cook said the shutterings will begin this year and continue through 2026, but did not give a list of specific locations. (Reached by Fast Company, Wendy’s declined to provide a specific number or list of locations.)
Cook said Wendy’s will approach underperforming restaurants on a case-by-case basis. He explained some current restaurants “do not elevate the brand” and are “a drag from a franchisee financial performance perspective.” The goal is to address and fix those restaurants by improving operations, through additional technology or equipment.
In other cases, closing the restaurant “will put money back in franchisees’ pockets and enable them to reinvest both capital and resources in their remaining restaurants.”
The bottom line: “Closures of underperforming units are expected to boost sales and profitability at nearby locations,” Cook said.
One year ago, in November 2024, Wendy’s also announced it was closing 140 “outdated” restaurants.