Wendy’s Plans to Close Hundreds of Restaurants
Wendy’s is preparing to shut down a significant number of its outlets across the United States. The company's interim CEO revealed that approximately 200 to 350 restaurants will be closed, which represents a portion of its nearly 6,000 U.S. locations.
Reason for Closures
The CEO explained to analysts that these closures target “consistently underperforming” restaurants that negatively impact the overall business performance. The process will begin shortly and will extend into next year.
Previous Closures and Recent Performance
This follows last year's decision to close 140 locations for similar reasons related to underperformance. Wendy’s recently experienced a nearly 5% decline in sales for a quarter, in contrast to some competitors.
- McDonald’s and Burger King reported positive earnings during the same period.
Wendy’s interim CEO said the closures address “consistently underperforming” locations dragging down the chain’s overall performance.
No detailed list of the specific restaurants to be closed has been released.
Author’s Summary: Wendy's plans a significant reduction of underperforming restaurants amid declining sales, while some competitors report gains.