[2025-11-08] Why Wendy’s Is Closing 200+ Restaurants: The Real Reason Behind the Shutdowns

Explainify

Saturday, November 8, 2025

Why Wendy’s Is Closing 200+ Restaurants: The Real Reason Behind the Shutdowns

Food giant Nestlé announced plans to slash 16,000 jobs, just weeks after replacing its chief executive officer. The job reductions, amounting to about 6% of the workforce, will occur over the next two years, the maker of Nespresso coffee capsules and KitKat candy bars said Thursday. Bloomberg's Fabienne Kinzelmann reports.

Wendy’s is closing hundreds of its restaurants across the United States, and the shutdowns will start this year. The company’s interim CEO, Ken Cook, announced that a “mid single-digit percentage” of Wendy’s 6,000 U.S. locations will be shut down — that’s roughly 200 to 350 restaurants.

The locations being closed are the ones that have been consistently underperforming and hurting the brand’s overall numbers. The goal isn’t just to cut costs — Wendy’s says shutting down weak stores will actually help nearby locations make more money and allow franchise owners to invest in stronger markets.

This isn’t the first wave of closures. Just last year, Wendy’s shut down 140 stores for the exact same reason: weak performance.

So why is Wendy’s struggling when McDonald’s, Burger King, and Shake Shack are all reporting positive sales?

Wendy's restaurants are closing as One big reason is competition. While Wendy’s saw U.S. same-store sales drop by 4.7%, its rivals attracted customers with better deals, bigger marketing pushes, and stronger value menus.

But it’s not all bad news for Wendy’s. Their new chicken tenders — branded as “Tendys” — sold so well that some restaurants ran out before the ads even launched. The company sees this as a sign that it can win people back, especially in chicken, where it wants to reclaim its old reputation.

The closures will continue through 2026, and Wendy’s hasn’t released a list of which locations will shut down yet.

So is this the beginning of a comeback… or a warning sign for the future of the chain? That’s the big question fans are watching.

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