Wendy’s to Shut Down Over 300 Stores in 2026, Impacting 8000 Workers

For many Americans, Wendy’s is a familiar stop for a quick meal, whether on a lunch break or during a long drive. That’s why the company’s latest announcement caught attention across the fast-food industry. Wendy’s says it plans to shut down more than 300 U.S. restaurants by 2026, a move that could affect roughly 8,000 workers nationwide.

The closures were disclosed during the November earnings call, where company executives described them as part of a broader effort to stabilize performance and reposition the brand for long-term growth. While Wendy’s emphasized that the decision is strategic, it still signals meaningful change for employees, franchisees, and customers in affected communities.

The announcement raises a larger question: why is a major fast-food chain shrinking its footprint at a time when dining demand remains uneven but persistent?

What Wendy’s Is Closing and When

Wendy’s executives estimate that a “mid-single-digit percentage” of its roughly 6,000 U.S. locations will close, translating to about 200 to 350 restaurants over the next two years. The closures are expected to begin in late 2025 and continue through 2026, though the company has not yet released a list of affected locations.

According to leadership, the restaurants targeted for closure are consistently underperforming and are often located in older buildings or weaker trade areas. Many of these locations are franchise-operated, and Wendy’s says it is working closely with franchisees to review financial performance and customer experience before making final decisions.

The company has also noted that closures may free up capital for reinvestment in remaining restaurants, including equipment upgrades, digital menu boards, and technology improvements aimed at improving service speed and efficiency.

Why Wendy’s Is Making This Move

The closures come as Wendy’s faces mounting pressure from several directions. U.S. same-store sales fell nearly 5% in recent quarters, reflecting fewer customer visits as consumers pull back on discretionary spending. At the same time, rising labor and food costs have squeezed margins across the fast-food sector.

Competition has also intensified. Casual dining chains like Chili’s have drawn customers with aggressive value deals, narrowing the price gap between fast food and sit-down restaurants. For Wendy’s, which has historically positioned itself as a slightly premium burger option, that shift has made it harder to compete purely on price.

In response, Wendy’s launched “Project Fresh,” a multi-year strategy focused on brand revitalization, system optimization, and reallocating capital toward higher-performing locations. Company leaders say closing weaker stores is meant to strengthen the overall system rather than signal retreat.

What the Closures Mean Going Forward

For workers and communities, the impact is immediate. Each closure affects local jobs and removes a familiar business presence, even as Wendy’s says it continues to open new restaurants in stronger markets. The company employs hundreds of thousands globally, and officials stress that the goal is to make remaining locations more sustainable.

At a broader level, Wendy’s decision reflects a wider reset happening across the restaurant industry. Chains are reassessing footprints, trimming underperforming locations, and betting that fewer, more efficient stores can deliver better results.

For Wendy’s, the success of that strategy will depend on whether reinvestment and brand updates can win back traffic in an increasingly competitive market without leaving too many workers behind in the process.