Wendy’s discreetly announces 300 store closures for next year — here are the impacted locations

Wendy’s to Close Hundreds of U.S. Restaurants

Wendy’s has announced its intention to shut down hundreds of locations across the United States in an effort to enhance profitability and make remaining restaurants more appealing.

During a recent investor conference call, the Ohio-based fast-food chain revealed plans to initiate closures in the fourth quarter of this year. They mentioned that a “mid-single-digit percentage” of their U.S. outlets would be impacted, although specifics weren’t disclosed.

Currently, Wendy’s operates 6,011 stores in the U.S. So, if about 5% were to close, that could mean approximately 300 locations would shut their doors.

This move comes on the heels of a previous closure of around 240 Wendy’s outlets, which the company attributed to many establishments being outdated.

Wendy’s interim CEO, Ken Cook, expressed that shutting down underperforming restaurants might drive more traffic and increase profitability at the remaining outlets.

Cook, who took over as CEO in July after the previous leader departed for Hershey’s, stated, “Some restaurants just aren’t boosting our brand and may hinder the financial performance for franchisees.” He added that the aim is to tackle these particular establishments and resolve their issues.

In some instances, Wendy’s could enhance struggling stores by introducing new technology or equipment. Alternatively, they might hand over operational control to another owner or permanently close certain restaurants.

Fast food chains in the U.S. have faced challenges recently, especially in drawing in lower-income customers due to inflationary pressures. Cook anticipates this strain will persist for the remainder of the year.

Wendy’s reported a 4% decline in same-store sales during the first nine months of the year compared to the same timeframe last year. Overall sales dipped by 2% to $1.63 billion, and net income experienced a 6% reduction, landing at $138.6 million.

While meal deals priced at $5 and $8, similar to McDonald’s, have managed to attract some customers back, Cook noted that the company has struggled to bring in new patrons. Plans to shift marketing efforts will focus on highlighting value and the freshness of its ingredients.