Wendy’s Plans to Close Hundreds of Restaurants
Wendy’s announced plans to shut down several of its outlets across the U.S. The company’s interim CEO revealed that approximately 200 to 350 out of its 6,000 locations will be closed. These stores have been identified as consistently underperforming and negatively impacting the brand’s overall results.
Details of the Closures
The closures will begin shortly and extend into the next year. However, Wendy’s has not provided a list of specific restaurants targeted for closure.
Context and Recent Performance
Last year, Wendy’s closed 140 locations for similar reasons related to underperformance. Recently, the chain reported a quarterly sales decline of nearly 5%, while competitors like McDonald’s and Burger King experienced positive earnings growth.
Wendy’s interim CEO said these are “consistently underperforming” locations that drag down the chain’s overall performance.
Author’s summary: Wendy’s is accelerating restaurant closures to address underperformance, facing challenges unlike its competitors who are growing.