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In plain terms: these restaurants are losing money, and diners are steering clear. Wendy’s has yet to disclose which restaurants will close, leaving franchise owners and employees in the dark about their futures.
While Wendy’s frames the closures as “strengthening the system,” the numbers tell a more alarming story. U.S. same-store sales dropped 4.7% in Q3.³ That’s not a minor stumble – it’s a significant decline.
Meanwhile, rivals are thriving. McDonald’s reported positive earnings, Burger King saw growth, and Shake Shack continues to attract customers willing to pay premium prices. Wendy’s, once famous for “Where’s the Beef?”, now seems unable to keep diners coming through the door.
The timing makes Wendy’s troubles even starker. While McDonald’s and Burger King leverage value meals and strategic marketing to attract customers, Wendy’s is losing them.
The company did see a hit of success with its chicken tenders, dubbed “Tendys,” which sold out at some locations.⁴ But a few sold-out items can’t offset the closure of 350 stores. Cook praised the chicken tender sales, yet it hardly masks the larger collapse.
Wendy’s calls this initiative a “turnaround plan.” In reality, it reads as a corporate acknowledgment that current strategies are failing. Cook claimed that shuttering these locations would “boost sales and profitability at nearby locations.”
But hoping customers will travel farther to another Wendy’s isn’t exactly a master plan. After closing 140 stores in 2024 and now 350 more, the chain has yet to show evidence of recovery.
Wendy’s refusal to name specific closures leaves many franchise owners scrambling. Cook suggested the closures would let franchisees “invest more capital and resources in their remaining restaurants.”
For many owners who poured life savings into their locations, this comment comes across as tone-deaf. Thousands of employees at the shuttered sites now face unemployment while executives continue to collect their paychecks.
Wendy’s isn’t the only chain facing hardship. TGI Fridays closed 50 locations and filed for bankruptcy, Denny’s announced 150 closures, and Red Lobster also filed for bankruptcy this year.
Meanwhile, chains like Chick-fil-A, In-N-Out, and Five Guys continue to thrive by delivering consistent quality and service. Wendy’s, in contrast, leaned heavily on cheap promotions while neglecting its core menu, driving customers to competitors.
When Wendy’s closes 350 locations while McDonald’s posts growth, the message is clear: poor decisions, not a weak economy, are to blame.⁵
Customers are leaving for chains that offer consistent quality and value. Wendy’s may talk about chicken tenders and optimization, but two years of consecutive mass closures and falling sales make it obvious—the chain is in survival mode. And survival, at this pace, is far from guaranteed.
