by Wendy’s announced plans to close hundreds of underperforming restaurants as consumers face financial strain and reduce spending on dining out. The fast-food chain’s interim CEO, Ken Cook, revealed the closures during a recent earnings call.
Scope of Restaurant Closures
With approximately 6,000 restaurants nationwide, Wendy’s plans to shutter a “mid single-digit percentage” of locations, which could translate to 200–350 closures. Some of these restaurants may close later this year, while additional closures are expected to continue into 2026.
Cook explained that closing underperforming locations is intended to boost sales and profitability at nearby restaurants. The chain has not yet released a specific list of affected locations.
Last year, Wendy’s closed 140 underperforming restaurants, while simultaneously opening new locations in more profitable areas.
Financial Performance and Stock Impact
Wendy’s reported a net income of $44.3 million, down from $50.2 million last year. Following the announcement, Wendy’s shares dropped 2.6 percent, leaving the stock down 46 percent for the year, according to The Wall Street Journal.
Cook acknowledged that many consumers are feeling financial pressure, particularly lower-income shoppers, which has affected restaurant traffic. He highlighted value offerings like the Biggie Bag meal, which includes a Junior Bacon Cheeseburger, four-piece nuggets, fries, and a drink for $5, as a way to support budget-conscious customers.
Economic Context
Rising living costs are influencing consumer behavior across the U.S. Earlier this week, voters in New York, New Jersey, and Virginia highlighted affordability as a key concern in recent elections.
The Consumer Price Index (CPI) rose 0.3 percent in September, with an annual inflation rate of 3 percent, slightly below expectations but still above the Federal Reserve’s 2 percent target. In New York City, 56 percent of voters cited the cost of living as their top community concern, while voters in New Jersey and Virginia pointed to property taxes, electricity costs, and federal budget cuts affecting household finances.
Company Strategy Moving Forward
Despite closures, Wendy’s aims to strengthen sales at more profitable locations and continue offering affordable meals to retain customers. Analysts suggest that the closures reflect both financial pressures on consumers and the company’s focus on long-term profitability.
Do you plan to visit Wendy’s less often due to financial pressures, or are value meals like the Biggie Bag keeping you coming back? Share your thoughts on the restaurant closures and dining trends in the comments below.
