Wendy’s to Close Hundreds of U.S. Restaurants
Wendy’s plans to shut down a significant number of its outlets across the United States. The interim CEO estimated that about 200 to 350 of the chain’s approximately 6,000 locations will close.
Reasons for Closures
The closures will target “consistently underperforming” restaurants that negatively impact the overall business results. This move aims to improve the chain’s financial health by focusing on better-performing stores.
Timeline and Details
The shutdowns are set to begin soon and will continue into next year. However, Wendy’s has not released the specific list of restaurants affected.
Context and Industry Comparison
Last year, Wendy’s closed 140 locations for similar reasons related to underperformance. Recently, the chain experienced a quarterly sales decline of nearly 5%, unlike competitors such as McDonald’s and Burger King, which reported positive earnings.
“Consistently underperforming locations that are dragging down the chain’s overall performance.”
Author's summary: Wendy’s will close 200 to 350 underperforming U.S. restaurants over the next year to improve overall results after recent sales declines.