Wendy’s closing 200 US restaurants but opening 1,000 new locations in this country

Facing mounting headwinds in the U.S. market, Wendy’s is shifting its strategic focus toward international expansion to bolster its financial performance.

Domestic Contraction

The Ohio-based burger chain has already shuttered 200 locations, with as many as 300 additional stores currently at risk of closure. These moves come on the heels of a 7.8% drop in U.S. sales during the first quarter, a decline the company attributes to weakened consumer spending fueled by persistent, high inflation.

A New Horizon in China

In a major pivot, Wendy’s is looking toward the Chinese market for long-term growth. According to reporting from TheMotleyFool.com, the chain has signed an agreement to establish 1,000 new restaurants in China over the next ten years.

This initiative, dubbed "Project Fresh," includes a focus on menu innovation, specifically highlighting updates like the company's signature spicy chicken sandwich.

Global Ambitions

Currently, the Wendy’s footprint spans over 7,000 restaurants across 30 countries, with 5,800 of those located within the United States. According to the company's website, leadership is actively seeking new franchisees across the Asia-Pacific region, Latin America, the Caribbean, Europe, the Middle East, and Africa.

Wendy’s is not the only major industry player betting on growth in China. McDonald’s has also aggressively expanded into the region, setting a goal to operate more than 10,000 restaurants there by the end of 2028.