Fact Check: Is Wendy's closing all its locations in the U.S.? Viral claim debunked

Reports of fast food chain Wendy's allegedly planning to close its stores across the United States have been circulating on social media since October 2023. Rumors spread after advertisements featuring a photograph of the company's founder, Dave Thomas, claimed it was one of "25+ big chain restaurants" that was "closing its locations." The two sponsored advertisements ran on Instagram and Facebook.

However, these are false claims, and there have been no official reports of Wendy's closing its stores.

The burger chain was founded by Dave Thomas in 1969 in Columbus, Ohio. He became a household name after he appeared in a series of humorous TV commercials that ran in the 1990s. According to his biography on the franchise's website, he appeared in over 800 commercials in just 13 years.

While the articles in the two advertisements have now been deleted, both hinted that the company was allegedly closing.

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Rumors claimed that Wendy's was going bankrupt or out of business due to other reason

As of December 2018, Wendy's was the world's third-largest hamburger fast-food chain, with 6,711 locations worldwide, of which 92% are located in the United States.

Two advertisements were running on social media, linking to articles by investing.com and sportsbonanza.com. An archived copy of the article on Investing.com, titled "Last Call: You May See Fewer of These Restaurant Chains in 2023," listed the restaurant chain as 44 of 123 restaurants that are taking a hit. Other companies listed included Pizza Hut, IHOP, and MacDonald's.

It claimed that Wendy's itself was not going out of business but rather that its biggest franchise operator, NPC International, allegedly was. Per the article, NPC operates 385 of the fast-food chain's restaurants in the United States. Thus, the company closing would mean the future of 385 restaurants remained uncertain.

"NPC filed for Chapter 11 in July of 2020, citing $903 million in debt. NPC tried to sell off 900 Pizza Huts to Yum! Brands to pay off some of the debt, but Yum! Brands backed out of the deal," it claimed.

According to The Business Journals, NPC International (named NPC Quality Burgers Inc. in Reuters) sold half its stores to Flynn Restaurant Group after approval from a judge in 2021. The rest of the stores were being brought by the restaurant's existing franchisees.

The second article, "Classic Fast Food Restaurants That Are Gone for Good," on sportsbonanza.com however, did not feature Wendy's in their list. The advertisement still displayed Dave Thomas' photo, creating confusion. Additionally, the article was published in October 2020, thus making both stories old.

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NPC International is not the only Wendy's franchise operator that filed for bankruptcy

According to Nation's Restaurant News, Starboard Group, a Florida-based company that operated 70 of the fast food chain stores filed for Chapter 11 bankruptcy protection on Tuesday, November 14, 2023, at a court in Orlando. They ran the brand's stores in Alabama, Florida, Illinois and Wisconsin.

Several companies in the Quick-Serice Restaurant (QSR) segment have filed for Chapter 11 this year, including a Hardee franchise and Premier Kings Inc., which ran Burger King.