New York
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Wendy’s is set to shut hundreds of places throughout the United States as half of its turnaround plan.
Interim CEO Ken Cook introduced Friday {that a} “mid single-digit percentage” of Wendy’s roughly 6,000 US places may shut, which might quantity to round 200 to 350 restaurants.
Affected places are these which can be “consistently underperforming” and dragging down the chain’s general efficiency, Cook advised analysts. The closures will start this yr and proceed via 2026.
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” he mentioned. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”
A selected record of places wasn’t introduced.
This string of closures comes a yr after Wendy’s introduced the shuttering of 140 locations, citing related underperformance points.
Wendy’s may use a jolt after reporting one other downbeat quarter. US same-store gross sales declined 4.7%, whereas rivals McDonald’s, Burger King and Shake Shack all posted optimistic earnings as prospects gravitated towards their offers and advertising efforts.
Despite the decline, Cook revealed that it’s seeing optimistic outcomes from its newly launched hen tenders, referred to as “Tendys.” Demand was so sturdy that some restaurants bought out even earlier than promoting started.
“We’re looking forward to continuing that momentum, and this is an encouraging first step as we look to reestablish our leadership position in chicken,” he mentioned.