Wendy’s Plans to Close Hundreds of Restaurants
Wendy’s announced plans to close hundreds of its restaurant locations across the United States. The interim CEO revealed that about 200 to 350 of the roughly 6,000 U.S. stores would be shut down.
Reasons for Closure
These closures target consistently underperforming restaurants dragging down Wendy’s overall results. The CEO explained this decision during a discussion with analysts.
Timeline and Scope
The closures will begin soon and continue into next year. However, no detailed list of affected locations has been provided.
Background Context
This follows last year’s announcement when Wendy’s decided to close 140 restaurants for similar performance reasons. Recently, the chain experienced a nearly 5% drop in sales for the quarter.
Industry Comparison
In contrast, some major competitors like McDonald’s and Burger King reported positive earnings during the same period.
Wendy’s interim CEO referred to the closures as targeting “consistently underperforming” locations affecting overall performance.
Author’s summary: Wendy’s is set to close 200 to 350 underperforming U.S. restaurants starting soon, aiming to improve overall results after recent declines.