DUBLIN, Ohio: Wendy's is tightening its belt again. After already shutting down 240 restaurants in 2024, the fast-food giant is preparing to close hundreds more U.S. locations in the coming months, hoping to revive traffic and protect shrinking profits.

The company said that a "mid-single-digit percentage" of its 6,011 U.S. restaurants will be affected, suggesting up to 300 more stores could shut down. Closures are expected to begin in the fourth quarter.

"We have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective," said interim CEO Ken Cook during a call with investors. "The goal is to address and fix those restaurants."

That may mean upgrading equipment or technology in some outlets, shifting ownership in others, or closing them altogether.

The decision follows a rough patch for the 55-year-old brand, which has struggled to retain lower-income customers amid rising prices. U.S. same-store sales fell four percent in the first nine months of 2025. Revenue dropped two percent to US$1.63 billion, and net income slid six percent to $138.6 million.

Cook, who stepped in as CEO in July after Kirk Tanner left for Hershey Co., acknowledged that inflation has continued to squeeze customers' wallets — especially those most sensitive to price changes.

"We expect lower-income consumers to remain pressured for the rest of this year," he said.

Wendy's has tried to lure customers back with $5 and $8 meal deals, joining rivals like McDonald's in pushing affordability. While these deals have helped drive some traffic, Cook admitted the chain is still falling short on attracting new customers.

To fix that, Wendy's plans to shift its marketing strategy to highlight both value and quality, especially the freshness of its ingredients.

The company has also been reevaluating how well individual restaurants are performing. Many of the locations shut in 2024 were described as "outdated" or no longer aligned with Wendy's brand experience. This latest round of closures continues that strategy.

The market wasn't pleased. Wendy's shares fell seven percent on November 7 following the announcement, and extended their losses into November 10, dropping another five percent by the afternoon.

Despite the cuts, Cook said the brand remains committed to strengthening its overall restaurant footprint, even if that means fewer total outlets. "We believe these moves will improve traffic and profitability at the remaining U.S. restaurants," he said.