5 Fast-Food Chains Cutting Back on Locations Right Now
Fast-food chains have been struggling with falling profits for years, with a combination of factors making it less appealing for people to go out and spend money instead of cooking at home. Brands across the board are struggling to recover from a rough period where inflation and rising prices make it hard to keep prices down while still making a profit. Sometimes closing down "underperforming" locations is the only way to focus on overall recovery (as is the case with Wendy's). Here are 5 major fast-food chains cutting back on locations right now.
Jack In the Box
Popular burger chain Jack In the Box closed down six underperforming restaurants in the first quarter of 2025, according to a recent Earnings Report. Sales were down 1.9% by the end of 2024, but the company is feeling positive about the future, with a new focus on technology and digital progress as well as a new POS system. "I will be continuing to assess capital allocation, investments and ways to accelerate free cash flow — all while executing on our fundamentals to ensure we regain our sales momentum as we move through 2025," says Interim Principal Executive Officer Lance Tucker.
Del Taco
A franchise legal battle resulted in 18 Colorado Del Tacos abruptly shutting down, leaving just one open in the whole state. Accusations of poor management and health and safety issues were just a few of the reasons the locations closed down—but Del Taco says it's working on getting them open again: "We will re-open these locations as soon as possible and will share updates as they become available."
Wendy's
Wendy's closed down 140 underperforming locations as part of a plan to focus on overall growth and profits. "Closures are a normal activity to maintain a healthy system," a spokesperson told NBC4. "The Wendy's brand has tremendous strength, and we will unlock its full potential, scaling our system to match the power of our brand," Kirk Tanner, Wendy's President and Chief Executive Officer, says the chain has "tremendous strength" and will "unlock its true potential".
KFC
25 KFC restaurants in the midwest operated by EYM Chicken closed down late last year after filing for bankruptcy. A spokesperson confirmed the news to the Peoria Journal Star, saying the decision was "difficult for both the franchisee and the brand". According to Restaurant Dive, EYM has been in constant dispute with KFC's parent company Yum Brands over the performance of EYM's Pizza Hut locations.
McDonald's
McDonald's is closing down three of its Texas CosMc locations, a spinoff concept focused on hot and cold specialty drinks and snacks like the wildly popular Savory Hashbrown Bites. The company says the experimental concept was always designed to be shut down abruptly if needed, with smaller format stores allowing the chain to test "new, unique circumstances that are reflective of our customer base."
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