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Wendy’s plans to close hundreds U.S. restaurants over the next few months in an effort to boost its profit and make its remaining stores more appealing.
The Dublin, Ohio-based chain said during a conference call with investors Friday that it planned to begin closing restaurants in the fourth quarter of this year. The company said it expected a “mid-single-digit percentage” of its U.S. stores to be affected, but it didn’t give any more details.
Wendy’s ended the third quarter with 6,011 U.S. restaurants. If 5% of those locations were impacted, it would mean 300 store closures.
The new round of closures comes on top of the closure of 240 U.S. Wendy’s locations in 2024. At the time, Wendy’s said that many of the 55-year-old chain’s restaurants are simply out of date.
Ken Cook, Wendy’s interim CEO, said Friday the company believes closing locations that are underperforming – whether it’s from a financial or customer service perspective – will help improve traffic and profitability at its remaining U.S. restaurants.
Cook became Wendy’s CEO in July after the company’s previous CEO, Kirk Tanner, left to become the president and CEO of Hershey Co.
“When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective. The goal is to address and fix those restaurants,” Cook said during a conference call with investors.
Cook said in some cases, Wendy’s will make improvements to struggling stores, including adding technology or equipment. In other cases, it will transfer ownership to a different operator or close the restaurant altogether.
U.S. fast food chains have been struggling to attract lower-income consumers in the past few years as inflation has raised prices. Cook said he expects lower-income consumers to remain pressured for the rest of this year.
In the first nine months of this year, Wendy’s said its U.S. same-store sales, or sales at locations open at least a year, fell 4% compared to the same period last year. Wendy’s revenue fell 2% to $1.63 billion in the same period, while its net income fell 6% to $138.6 million.
Cook said $5 and $8 meal deals — which have been matched by McDonald’s — have helped bring some traffic back to its U.S. stores. But Wendy’s isn’t doing a good job of bringing in new customers, Cook said, so the company plans to shift its marketing to emphasize its value and the freshness of its ingredients.
Wendy’s shares dropped 7% Friday. On Monday, they were down 5% in afternoon trading.
The longest federal government shutdown in U.S. history appears to be nearing an end, but not without leaving a mark on an already-struggling economy.
About 1.25 million federal workers haven’t been paid since Oct. 1. Thousands of flights have been canceled, a trend that is expected to continue this week even as Congress moves toward reopening the government. Government contract awards have slowed and some food aid recipients have seen their benefits interrupted.
Most of the lost economic activity will be recovered when the government reopens, as federal workers will receive back pay. But some canceled flights won’t be retaken, missed restaurant meals won’t be made up, and some postponed purchases will end up not happening at all.
“Short-lived shutdowns are usually invisible in the data, but this one will leave a lasting mark,” Gregory Daco, chief economist at accounting giant EY said, “both because of its record length and the growing disruptions to welfare programs and travel.”
The Congressional Budget Office estimated that a six-week shutdown will reduce growth in this year’s fourth quarter by about 1.5 percentage points. That would cut growth by half from the third quarter. The reopening should boost first-quarter growth next year by 2.2 percentage points, the CBO projected, but about $11 billion in economic activity will be permanently lost.
The previous longest government shutdown, in 2018-2019, lasted 35 days but only partially shut the government because many agencies had been fully funded. It only nicked the economy by about 0.02% of GDP, the CBO said then.
The current shutdown is adding to the economy’s existing challenges, which include sluggish hiring, stubbornly elevated inflation, and President Donald Trump’s tariffs, which have caused uncertainty for many businesses. Still, few economists foresee a recession.
About 650,000 federal workers didn’t work during the shutdown, which will likely boost the unemployment rate by about 0.4 percentage points in October, or to 4.7% from 4.3% in August, when the last report was released. Those workers would all then be counted as employed once the government reopens.
Here are the ways the government closure is weighing on the economy:
Missed paychecks
All told, federal workers will have missed about $16 billion in wages by mid-November, the CBO estimates. That has meant less spending at stores, restaurants, and likely reduced holiday travel. Large purchases will probably be postponed, slowing the broader economy.
Trump had threatened during the shutdown to not provide back pay but the deal struck in Congress would replace those lost wages once the government reopens.
The shutdown has added to the Washington, D.C. area’s economic woes, where the unemployment rate was already 6% before the shutdown, after Trump’s cuts to the federal workforce this spring caused job losses. While the Washington, D.C. area — including the nearby suburbs in Virginia and Maryland — have the highest concentration of federal workers, most live and work outside of the nation’s capital.
Federal workers make up about 5.5% of Maryland’s workforce, according to the Bipartisan Policy Center. But they also comprise 2.9% of New Mexico’s workers, 2.6% of Oklahoma’s, and 3.8% of Alaska’s.
Then there are the federal contractors. Bernard Yaros, an economist at Oxford Economics, estimates they could total as many as 5.2 million, and they are not guaranteed back pay once the shutdown ends.
Flight disruptions
Airlines scrapped more than 2,000 flights by Monday evening after canceling 5,500 since Friday on orders from the Federal Aviation Administration, which is seeking to reduce the burden on overworked air traffic controllers, who have now missed two paychecks.
Even before the flight cancellations, Tourism Economics, an economic consulting firm, estimated that the shutdown would reduce travel spending by $63 million a day, which means a six-week standoff would cost the travel industry $2.6 billion.
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The canceled flights also mean less business for hotels, restaurants, and taxi drivers. And federal employees have already pulled the plug on upcoming trips, according to Tourism Economics, which may not be able to be rescheduled even when the government does reopen.
Consumer sentiment
The shutdown has worsened Americans’ outlook on the broader economy. Declining consumer sentiment can over time reduce spending and slow growth, though in recent years Americans have kept shopping even when their outlooks turned grim.
Consumer sentiment dropped to a three-year low and close to the lowest point ever recorded in a survey by the University of Michigan, reported Friday, with pessimism over personal finances and anticipated business conditions weighing on Americans.
The November survey showed the index of consumer sentiment at 50.4, down a startling 6.2% from last month and a plunge of nearly 30% from a year ago.
Federal spending
While the shutdown hasn’t cut off all federal government spending, it has reduced purchases of equipment and has cut off the issuance of new contracts.
Yaros estimates that about $800 million in new contracts were at risk of not being awarded each day of the shutdown.
“The federal award spigot has all but turned off at the Department of Defense, NASA, and the Department of Homeland Security,” Yaros wrote.
SNAP benefits
The shutdown delayed the payment of $8 billion in monthly SNAP food aid to 42 million recipients in November, creating a significant financial disruption for many households that likely reduced spending. Some states have managed to pay full benefits for this month, though the Trump administration is still fighting over the issue in court.
The deal currently under consideration in Congress to reopen the government includes full funding of SNAP benefits.
Interest rate cuts
The government shutdown cut off the flow of economic data on unemployment, inflation, and retail spending that the Federal Reserve depends on to monitor the economy’s health. Even as the government reopens, some of that data will still be delayed. As a result, the Fed may not deliver a third interest rate cut at its December meeting, which was widely expected before the shutdown.
“What do you do if you’re driving in the fog? You slow down,” Fed Chair Jerome Powell said at a news conference late last month.
Powell said the Fed’s interest-rate setting committee is deeply divided over whether to reduce its key rate, partly because the economy’s health is unusually cloudy right now. The government has missed two monthly jobs reports and the October inflation data, scheduled to be published Thursday, will likely never be issued.
Powell said a rate cut in December was not a “foregone conclusion” and added that the lack of data could contribute to a decision by the Fed to skip a rate cut at its next meeting December 9-10. Fewer rate cuts could discourage borrowing and spending and weigh on the economy in the coming months.
Air travelers should expect worsening cancellations and delays this week even if the government shutdown ends, as the Federal Aviation Administration rolls out deeper cuts to flights at 40 major U.S. airports, officials said Monday.
The fourth day of the flight restrictions saw airlines scrap over 2,300 flights Monday and more than 1,000 flights set for takeoff Tuesday. Unpaid for more than a month, some air traffic controllers have begun calling out of work, citing stress and the need to take on second jobs.
President Donald Trump took to social media on Monday to pressure controllers to “get back to work, NOW!!!” He called for a $10,000 bonus for those who’ve stayed on the job and suggested docking pay for those who haven’t.
Rep. Rick Larsen, the top Democrat on the House Committee on Transportation and Infrastructure, and Sen. Tammy Duckworth, ranking member of the Senate’s Aviation Subcommittee, condemned the president’s remarks, saying controllers deserve appreciation and support — not attacks.
The head of the controllers union says its members are being used as a “political pawn” in the shutdown fight.
Meanwhile, the Senate passed legislation Monday to reopen the government, though the bill also needs to clear the House and final passage could be days away. Transportation Secretary Sean Duffy made clear last week that flight cuts will remain in place until the FAA sees staffing levels stabilize at its air traffic control facilities.
And because the flight disruptions are widespread and ongoing, many planes aren’t where they’re supposed to be, which could also slow the airlines’ return to normal operations even after the FAA lifts the order, said Mike Taylor, who leads research on airports and airlines at J.D. Power.
“If you think about it, there’s all these aircraft that didn’t fly where they were supposed to on a normal route,” Taylor said, noting airlines will need to track down all their planes, figure out where each needs to be, and find pilots and cabin crew for those flights.
Since Friday, airlines have canceled about 8,000 flights under orders to drop 4% of flights at 40 of the nation’s busiest airports. That will rise to 6% on Tuesday and 10% by week’s end, the FAA says.
One in 10 flights nationwide were scratched Sunday — the fourth worst day for cancellations in almost two years, according aviation analytics firm Cirium.
Controller shortages also led to five-hour delays Monday evening at Chicago O’Hare International Airport, where wintry weather added to the disruptions earlier in the day, and the FAA warned that staffing at over a dozen towers and control centers could cause delays in cities including Philadelphia, Nashville and Atlanta.
That leaves travelers growing angry.
“All of this has real negative consequences for millions of Americans, and it’s 100% unnecessary and avoidable,” said Todd Walker, who missed his mom’s 80th birthday when his flight was canceled over the weekend.
The FAA also expanded flight restrictions Monday, barring business jets and many private flights from using a dozen airports already under commercial flight limits.
Airports nationwide have seen intermittent delays since the shutdown began because the FAA slows air traffic when it’s short on controllers to ensure flights remain safe.
The shutdown has made controllers’ demanding jobs even more stressful, leading to fatigue and increased risks, said Nick Daniels, president of the National Air Traffic Controllers Association. He said the number who are retiring or quitting is “growing” by the day.
During the six weekends since the shutdown began, an average of 30 air traffic control facilities had staffing issues. That’s almost four times the number on weekends this year before the shutdown, according to an Associated Press analysis of operations plans sent through the Air Traffic Control System Command Center system.
Tuesday will be the second missed payday for controllers. It’s unclear how quickly they might be paid once the shutdown ends — it took more than two months to receive full back pay after the 35-day shutdown that ended in 2019, Daniels said.
The latest shutdown and money worries have become regular “dinnertime conversations” for Amy Lark and her husband, both Washington, D.C., area air traffic controllers.
“Yesterday, my kids asked me how long we could stay in our house,” Lark said. Still, she said controllers remain “100% committed.”
The Senate passed legislation Monday to reopen the government, bringing the longest shutdown in history closer to an end as a small group of Democrats ratified a deal with Republicans despite searing criticism from within their party.
The 41-day shutdown could last a few more days as members of the House, which has been on recess since mid-September, return to Washington to vote on the legislation. President Donald Trump has signaled support for the bill, saying Monday that “we’re going to be opening up our country very quickly.”
The final Senate vote, 60-40, broke a grueling stalemate that lasted more than six weeks as Democrats demanded that Republicans negotiate with them to extend health care tax credits that expire Jan. 1. The Republicans never did, and five moderate Democrats eventually switched their votes as federal food aid was delayed, airport delays worsened and hundreds of thousands of federal workers continued to go unpaid.
House Speaker Mike Johnson urged lawmakers to start returning to Washington “right now” given shutdown-related travel delays, but an official notice issued after the Senate vote said the earliest the House will vote is Wednesday afternoon.
“It appears our long national nightmare is finally coming to an end,” said Johnson, who has kept the House out of session since mid-September, when the House passed a bill to continue government funding.
How the stalemate ended
After weeks of negotiations, A group of three former governors — New Hampshire Sen. Jeanne Shaheen, New Hampshire Sen. Maggie Hassan and Independent Sen. Angus King of Maine — agreed to vote to advance three bipartisan annual spending bills and extend the rest of government funding until late January. Republicans promised to hold a vote to extend the health care subsidies by mid-December, but there was no guarantee of success.
Shaheen said Monday that “this was the option on the table” after Republicans had refused to budge.
“We had reached a point where I think a number of us believed that the shutdown had been very effective in raising the concern about health care,” she said, and the promise for a future vote “gives us an opportunity to continue to address that going forward.”
The legislation includes a reversal of the mass firings of federal workers by the Trump administration since the shutdown began on Oct. 1. It also protects federal workers against further layoffs through January and guarantees they are paid once the shutdown is over.
In addition to Shaheen, King and Hassan, Democratic Sen. Tim Kaine of Virginia, home to tens of thousands of federal workers, also voted Sunday in favor of moving forward on the agreement. Illinois Sen. Dick Durbin, the No. 2 Democrat, Pennsylvania Sen. John Fetterman and Nevada Sens. Catherine Cortez Masto and Jacky Rosen also voted yes. All other Democrats, including Senate Democratic leader Chuck Schumer of New York, voted against it.
The moderates had expected a larger number of Democrats to vote with them as 10 to 12 Democratic senators had been part of the negotiations. But in the end, only five switched their votes — the exact number that Republicans needed. King, Cortez Masto and Fetterman had already been voting to open the government since Oct. 1.
Many Democrats call the vote a “mistake”
Schumer, who received blowback from his party in March when he voted to keep the government open, said he could not “in good faith” support it after meeting with his caucus for more than two hours on Sunday.
“We will not give up the fight,” Schumer said, adding that Democrats have now “sounded the alarm” on health care.
Independent Sen. Bernie Sanders of Vermont, who caucuses with the Democrats, said giving up the fight was a “horrific mistake.” Sen. Chris Murphy, D-Conn., agreed, saying that voters who overwhelmingly supported Democrats in last week’s elections were urging them to “hold firm.”
House Democrats swiftly criticized the Senate.
Texas Rep. Greg Casar, the chairman of the Congressional Progressive Caucus, said a deal that doesn’t reduce health care costs is a “betrayal” of millions of Americans who are counting on Democrats to fight.
Others gave Schumer a nod of support. House Democratic leader Hakeem Jeffries had criticized Schumer in March after his vote to keep the government open. But he praised the Senate Democratic leader on Monday and expressed support for his leadership throughout the shutdown.
“The American people know we are on the right side of this fight,” Jeffries said Monday, pointing to Tuesday’s election results.
Health care debate ahead
It’s unclear whether the two parties would be able to find any common ground on the health care subsidies before a promised December vote in the Senate. House Speaker Mike Johnson, R-La., has said he will not commit to bringing it up in his chamber.
On Monday, Johnson said House Republicans have always been open to voting to reform what he called the “unaffordable care act” but again did not say if they would vote on the subsidies.
Some Republicans have said they are open to extending the COVID-19-era tax credits as premiums could skyrocket for millions of people, but they also want new limits on who can receive the subsidies. Some argue that the tax dollars for the plans should be routed through individuals.
Senate Appropriations Committee Chairwoman Susan Collins said Monday that she’s supportive of extending the tax credits with changes, like new income caps. Some Democrats have signaled they could be open to that idea.
“We do need to act by the end of the year, and that is exactly what the majority leader has promised,” Collins said.
Other Republicans, including Trump, have used the debate to renew their yearslong criticism of the law and called for it to be scrapped or overhauled.
In a possible preview, the Senate voted 47-53 along party lines Monday not to extend the subsidies for a year. Majority Republicans allowed the vote as part of a separate deal with Democrats to speed up votes and send the legislation to the House.
Warren Buffett is speeding up his plan to give away his $149 billion fortune to his children’s foundations — while giving Berkshire shareholders a brief window to build confidence in incoming CEO Greg Abel.
His Thanksgiving letter that will become an annual tradition is one of his most personal yet. At 95, he says he still feels “good,” though age is catching up.
Buffett devoted part of his letter to reaffirming Berkshire’s durability, saying it is designed to withstand nearly any economic environment.
Apple is pushing back the release of its next iPhone Air — originally set for fall 2026 — amid weak consumer demand for the new slimmed-down phone, The Information reports, citing anonymous sources. It has also "sharply scaled back" production of the current model. While the iPhone Air generated buzz for its ultrathin design, reviewers noted sacrifices in the battery life and cameras. Delaying the next version at this stage is a "rare if not unprecedented move," according to the report.
The head of Tesla's Cybertruck program is leaving the company after more than eight years. Siddhant Awasthi called his exit "one of the hardest decisions of my life" in a LinkedIn post on Sunday night. Awasthi had also led the automaker's Model 3 program since July. Tesla is facing a number of challenges at the moment, including a safety probe and a tussle over CEO Elon Musk's pay. Meanwhile, in China — Tesla's second-largest market after the U.S. — sales dropped to a three-year low in October.
Visa and Mastercard cinched an agreement with merchants that caps a decades-long legal battle over swipe fees. The deal, which awaits court approval, requires the payment giants to lower credit-card interchange fees by an average of 0.1 percentage point over five years — down from 2% to 2.5%. This gives merchants greater leeway to add a surcharge or reject specific credit cards, including rewards cards. Swipe fees came to $111.2 billion in the U.S. last year, up from $100.8 billion in 2023 and quadruple the level in 2009.
Burger King's parent company, Restaurant Brands International, has cut a joint-venture deal with a Chinese private equity firm to expand its business there. The firm, CPE, will invest $350 million, taking an 83% stake and doubling the number of Burger King locations in China over the next five years. Burger King has had a presence in China since 2005, but its business there took a substantial hit during the pandemic. Closer to home, RBI has tapped Nicolas Henrich as COO of Burger King's U.S. and Canada operations.
The Veterans Day holiday began more than a century ago, albeit under a different name, as a celebration of the end of World War I. Over time its name and purpose evolved into a day of recognition for U.S. veterans of all wars as well as those currently serving in uniform.
It’s also day off for U.S. postal workers and federal government employees, though most of them are not reporting to work right now during the longest government shutdown in U.S. history.
Many Veterans Day celebrations have been cancelled due to the government shutdown.
Veterans Day began as Armistice Day to celebrate the agreement between the Allied nations and Germany to cease all fighting during World War I that took effect at 11 a.m. on Nov. 11, 1918.
The U.S. marked its first Armistice Day under President Woodrow Wilson in 1919. Congress made Nov. 11 an official federal holiday in 1938.
Here’s what is open and closed this year on Veterans Day:
GOVERNMENT
Government offices, post offices and courts are closed. Many public and private schools operate as usual. However, depending on location, some choose to close for the holiday.
U.S. stock markets are open for trading as usual, however the bond market and most banks are closed.
RETAILERS
The vast majority of major retailers — including Walmart, Home Depot and Target — will be open, with many trying to lure customers with promotional sales. Hours may vary by location.
TRAVEL
Veterans Day is not considered a major travel day, however this year air travelers could find their plans upended by the federal government shutdown.
U.S. airlines canceled more than 1,500 flights Saturday and more than 2,900 Sunday to comply with an FAA order to reduce traffic as some air traffic controllers, who have gone unpaid for nearly a month due to the shutdown, have stopped showing up for work.
As of early Monday, airlines had already canceled nearly 1,600 flights for Monday and nearly 1,000 for Tuesday.
The Senate took a first step toward ending the shutdown Sunday, but final passage could still be several days away and experts have said it will take time for flight schedules to return to normal even after the government reopens.