Wendy’s (WEN) stock took a beating on Monday alongside news that the fast-food chain plans to close roughly 300 locations. This was revealed by CEO Ken Cook during an earnings call. He noted the closures will affect a mid-single-digit percentage of its U.S. locations, which total nearly 6,000 stores.
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According to Cook, the decision to close Wendy’s stores in the U.S. is due to economic factors, including a drop in same-store sales in the company’s latest earnings report. This has sparked a strategic evaluation of the business, which will target underperforming locations. The CEO expects this to boost same-store sales and profits, as customers will move to other locations within the same markets.
Wendy’s plans to start these store closures in the fourth quarter of 2025. It also intends to continue them into 2026. What’s unclear is how many layoffs will result from these changes. While some staff may be moved to other locations, not all staff will, resulting in layoffs that could hit hundreds of employees, if not more.
Wendy’s Stock Movement Today
Wendy’s stock was down 4.01% on Monday, extending a 44.91% year-to-date drop. The stock has also fallen 52.26% over the past 12 months. These drops came alongside increased competition in the burger market, as traditional restaurant chains have targeted this space with budget offerings.
Is Wendy’s Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Wendy’s is Hold, based on three Buy, 13 Hold, and five Sell ratings over the past three months. With that comes an average WEN stock price target of $10.08, representing a potential 16.84% upside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings report.
