The 5 Biggest Changes Rocking Wendy's In 2025: Closures, 'Project Fresh,' And The Dynamic Pricing Debate

The Wendy's Company is currently undergoing one of the most significant strategic transformations in its recent history, a period marked by both ambitious innovation and widespread controversy. As of December 12, 2025, the fast-food giant is navigating a complex landscape defined by rising food costs, shifting consumer habits, and a bold new direction for its operations and menu. This year has seen the unveiling of a major strategic overhaul, a high-stakes plan to close hundreds of underperforming locations, and a contentious debate over how the company intends to price its beloved square hamburgers and classic Frosty treats.

The company’s executive team is betting on a multi-faceted approach to revitalize its brand and boost profitability amidst a mixed financial performance, which saw a dip in global systemwide sales despite strong international growth. From new core menu items like "Tendys" to the controversial investment in "dynamic pricing" technology, understanding Wendy's 2025 strategy requires a deep dive into the initiatives that are setting the stage for the future of the third-largest hamburger chain in the world.

The Core Business Strategy: 'Project Fresh' and the Great Store Portfolio Review

In early 2025, The Wendy's Company officially launched "Project Fresh," a comprehensive strategic plan designed to overhaul its operations, menu, and customer experience. This initiative serves as the roadmap for the company's growth, reaffirming its commitment to its quality differentiator: the iconic square hamburgers made with fresh, never frozen beef.

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The Strategic Review and Mass Restaurant Closures

A major, and perhaps unsettling, component of the 2025 strategy is a sweeping review of its store portfolio. Starting in late 2025, Wendy's announced plans to close several hundred underperforming U.S. restaurants. This strategic move, which could see up to 300 locations shut down through 2026, is a direct response to a challenging economic climate marked by falling profits, rising food inflation, and a sales decline in certain domestic markets. The closures are intended to streamline operations and refocus resources on high-growth, profitable units.

Global Expansion and Unit Growth

Despite the domestic contraction, Wendy's international footprint is expanding rapidly, providing a much-needed silver lining. The company reported a significant 8.6% growth in International systemwide sales in the third quarter of 2025. The global unit growth is strong, with Wendy's proudly opening 118 new restaurants globally in the first half of 2025, demonstrating a commitment to overseas markets like the UK, Canada, and Asia-Pacific regions.

Controversy and Innovation: The Dynamic Pricing Debate

One of the most talked-about and controversial topics surrounding Wendy's in 2025 is the announcement regarding "dynamic pricing," often referred to as surge pricing. In mid-February, CEO Kirk Tanner sparked a major public debate when the company announced a $20 million investment in new digital menu boards by 2025.

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The Digital Menu Board Investment

The core of the controversy lies in the intended use of these new digital menu boards. While the company stated the technology would allow for testing of flexible pricing based on various factors, the public immediately interpreted this as a plan for "surge pricing" during peak hours, similar to ride-sharing services. The backlash was swift, forcing the company to issue clarifications that the technology was primarily for offering discounts and value deals during slower periods, not just raising prices.

This move highlights a broader industry shift toward digital transformation, where personalized offers and real-time pricing adjustments become the norm. The investment is part of a larger plan to enhance the digital customer experience and drive sales through technological innovation.

2025 Menu Revolution: New Tenders, Frosty Fusions, and Spicy Baconators

The Wendy's menu has seen significant innovation in 2025, with several new and returning items designed to expand its offerings beyond its core beef products, particularly focusing on chicken, beverages, and value.

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The Arrival of 'Tendys' and Expanded Chicken Offerings

A major development this year is the introduction of a new core menu item: all-new Chicken Tenders, affectionately dubbed "Tendys" by fans and the company alike. This addition signals a renewed focus on the chicken category, aiming to compete more directly with rivals in a highly competitive segment. The company has emphasized that expanding its chicken and beverage categories is a key pillar of its 2025 growth strategy.

Frosty Innovation: Snickerdoodle and the First 'Frosty Day'

The iconic Frosty is a cornerstone of the Wendy's brand, and 2025 has brought two major updates to the frozen treat. The new Snickerdoodle Cookie Frosty Fusion™ debuted, blending the classic Frosty with snickerdoodle sauce and crumbled cookies, providing a fresh seasonal twist. Furthermore, the company declared November 15 as the first-ever "Frosty Day" holiday, a move designed to boost sales and celebrate one of its most recognizable items.

Upcoming Spicy and Value-Driven Items

Looking ahead, the menu pipeline is loaded with spicy, high-demand items. For the summer of 2025, fans can anticipate the launch of the Jalapeño Baconator Fries and the Jalapeño Popper Bacon Cheeseburger, catering to the popular demand for bold, spicy flavors and menu mash-ups.

On the value front, the $5 Biggie Bag continues to be a crucial offering, with the company expanding and emphasizing its value proposition to attract budget-conscious customers. The Biggie Bag typically offers a choice of a main item (like the Crispy Chicken Sandwich or Junior Bacon Cheeseburger) along with small fries and a drink.

Financial Performance and the Road Ahead

The financial results for 2025 painted a mixed picture for the company. While the third quarter saw adjusted earnings per share (EPS) of $0.24, surpassing analyst forecasts, the overall picture included a decrease in global systemwide sales by 2.6%. The strong performance in international markets (8.6% growth) helped to offset challenges in the U.S. market, where inflation and competition are fierce.

The company's focus on "Project Fresh," the strategic closure of underperforming stores, and the investment in digital technology are all geared toward improving profitability and free cash flow in the long term. Free cash flow for the first nine months of 2025 was approximately $195.6 million, a slight decrease from the previous year, indicating the significant capital expenditure required for the current transformation.

In conclusion, 2025 is a year of intense restructuring and bold bets for Wendy's. The company is simultaneously shrinking its domestic physical footprint while aggressively expanding its menu and digital capabilities. The success of "Project Fresh" and the public's reaction to its dynamic pricing strategy will determine whether the iconic fast-food chain can successfully navigate the current economic headwinds and solidify its position in the competitive quick-service restaurant industry.