Both Burger King and Wendy’s have closed or plan to close hundreds of restaurants.
In the case of Burger King, the company has lost key franchise operators. That’s something the chain mitigated by buying some closed locations, but it has lost dozens of restaurants.
Wendy’s, which also uses a franchise model, has taken a more aggressive approach to its fleet of restaurants. Interim CEO Ken Cook laid out those plans during the chain’s third-quarter earnings call.
“In our last earnings call, I outlined three key initiatives: getting to know our customers better, simplifying our programming and execution, and working more closely with our franchisees as One Wendy’s. In addition to these initiatives, we have made a strategic decision to prioritize growing average unit volume over net unit growth in our U.S. business,” he said.
This led the company to launch “Project Fresh,” a comprehensive turnaround plan to drive profitable growth and long-term value in its US system.
In addition, the chain is evaluating its underperforming restaurants with a focus on improving their performance.
“For some locations, it’s about making operational changes or using technology. For others, we’re improving productivity by aligning work hours to better match early morning and late afternoon hours in particular,” shared Cook.
For some locations, the solution will be more dramatic.
“In other cases, the solution is to close consistently underperforming restaurants. These actions strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” he said.
More restaurants
The chain expects to close about 400 struggling locations to free up capital to improve remaining locations.
“Investments include new kitchen equipment to ensure the highest quality, best-tasting food and technology upgrades such as digital menu boards to increase productivity and give our teams more time to focus on hospitality,” added the interim CEO.
Although it hasn’t been as public about its problems as Wendy’s or Burger King, Hardee’s has suffered from a steadily shrinking restaurant base. Bandhas have occurred for various reasons.
In 2023, Summit Restaurants Holdings, Hardee’s flagship franchisee, filed for Chapter 11 bankruptcy. That led the company to close about 40 Hardee’s locations in several states in the Midwest and South, which it attributed to poor performance at all restaurants and a lack of in-store foot traffic.
By 2024, Hardee’s has closed locations in at least seven cities in Illinois and already has several closings in 2025, including one in Delaware. Source: FinanceBuzz
Hardee’s sister brand, Carl’s Jr. had to suffer the same fate. Over the past several months, it has closed several locations, including more than 20 restaurants in Australia last year and one in Georgetown, Texas. Source: 7 News Australia
Hardee’s closure continues through 2025.
Because Hardee’s is not publicly traded, its parent company, CKE Restaurants, is under no obligation to report which restaurants it has closed. But local news is usually covered when a location closes.
Hardee’s, Fargo, ND (3072 45th St. S.): Permanently closed in November 2025. Source: Inforum
Hardee’s, West Fargo, ND (1450 13th Ave. E.): Permanently closed November 2025. Source: Inforum
All Hardee’s locations in Sioux City, IA: Both stores are permanently closed until November 2025. Source: KTIV
Hardee’s, Willmar, MN (1704 First Street South): Permanently closed November 2025. Source: West Central Tribune
Hardee’s, Marion, IL (1100 N. Carbon St.): Permanently closed until December 2025 (door sign). Source: KFVS
Hardee’s, Fredericktown, MO (501 E. Highway 72): Closing suddenly without notice on December 4, 2025. Source: Daily Journal Online
Hardee’s, Millvale, PA: Permanently closed in August 2025 after more than 50 years in operation.
A franchise operator of Hardee’s (owning 76 locations in AL, MS, TN, and FL) reportedly faces possible closure by the parent company. Source: RetailWire
Hardy has struggled on many fronts. Sutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-1gfnohs loader”/>
Hardy has struggled on many fronts. Shutterstock
Hardee’s adopted AI to assist in its drive-thru operations, and even after the company partnered with more human oversight, it hasn’t gone over well.
“A 2024 report on drive-thru wait times published by InTouch Insight confirmed that ordering at Hardee’s drive-thru can be slow and is clearly getting slower. In 2022, Hardee’s earned accolades as the third-highest ranking leader. Five,” Takeout reported.
Hardee’s has also struggled with customer perception.
“On Yelp, the Hardee’s brand has rated more than 1,380 locations on the site, with more than 9,000 reviews, and those reviews give the chain a low average rating of 2.3 out of 5,” according to Yelp data.
Reviews are harsh.
“Today they had a $5.99 double cheeseburger combo. The burgers were too small and cooked like hockey pucks. The cheese was cold instead of melted, and the buns were stale. The fries were hot, and the tea was good. All the Hardy’s in the area have definitely gone downhill,” Charlie B. wrote on the Yelp page for his local restaurant.
By comparison, Burger King makes $1.6 million, Wendy’s $2.1 million, and McDonald’s about $4 million. All four have similar business models, with all three having day portions and restaurants with drive-throughs.
Hardee’s average unit volume is lower than it was a decade ago.
The chain has closed 200 U.S. locations over the past decade, including 150 in the past three years.
The brand’s home system sales have fallen 12% since 2014, according to data from restaurant business sister company Technomic. Source: Restaurant Business Online
Hardee’s is not alone in its struggles.
“Captives were a common theme among brands with declining sales,” noted Technomic. About 75% of chains in this group closed at least one location during the year.
This may be partly due to the problems facing the entire industry.
“The restaurant industry faces significant headwinds in 2024, including higher prices, changing consumer spending patterns and increased competition,” said Kevin Schimpf, Technomic’s senior director of industry research.
“Despite the challenging environment, Top 500 chain sales remained positive, climbing for the fourth year in a row.”
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This story was originally published by TheStreet on December 6, 2025, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.