Dairy Queen closed 46 U.S. franchise stores since early 2025, with 42 in Texas after a dispute with operator Project Lonestar over renovations. Alaska and Montana also saw closures.
Alpha Score of 56 reflects moderate overall profile with weak momentum, strong value, moderate quality, moderate sentiment.
Dairy Queen has closed 46 franchise stores across the United States since early 2025, with Texas absorbing the bulk of the cuts.
Forty-two of the shuttered locations were in Texas, tied to a dispute with Project Lonestar, one of the chain's largest franchise operators. The franchisee failed to complete required renovations at its restaurants, according to reports, prompting Dairy Queen to terminate the franchise agreements. Once those agreements ended, the stores could no longer operate under the Dairy Queen banner.
More recent closures hit Alaska and Montana. Three Dairy Queen restaurants in Anchorage, Wasilla and Palmer shut down at the end of June, leaving just one location in the state, in Soldotna. A long-running Dairy Queen in Great Falls, Montana, also closed after 39 years in business.
The closures come as restaurant chains across the U.S. contend with higher food, labor and operating costs. Rising prices have pushed some consumers to cut back on eating out and buying treats like ice cream.
Dairy Queen said the situation does not reflect a nationwide shutdown. The company, founded in 1940 and owned by Berkshire Hathaway since 1998, still operates roughly 7,800 restaurants in more than 20 countries. It is expanding in some markets, including plans to open 20 new Grill & Chill restaurants in Puerto Rico.
The chain has continued launching new Blizzard flavors and seasonal promotions, signaling that the brand remains focused on growth even as some franchise locations close. For customers who lost their local Dairy Queen, the nearest Blizzard may now be a longer drive away.
Berkshire Hathaway (BRK.B) holds an Alpha Score of 47 out of 100, labeled Mixed, in the Financials sector.
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