Beloved fast food chain Wendy’s has announced plans to close hundreds of sites across the United States, with a top-ranking official alleging the mass shutdowns will help ‘strengthen’ the company.
There are approximately 6,000 Wendy’s in the United States, serving up fresh-beef burgers, moreish breakfast items, and the signature Frosty desserts.
But your local eatery could soon be boarded up as Interim CEO Ken Cook announced on Friday (7 November) that a ‘mid single-digit percentage’ of fast food outlets would be shutting up shop for good.
People has stated that 200 to 350 restaurants would be axed, meaning hundreds of employees could eventually lose their jobs.
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Affected locations are currently unknown, but it’s reported that closures will begin this year and may continue through to 2026.
According to CNN Business, locations that are ‘consistently underperforming’ will be targeted first.
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook continued.
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“Closures of underperforming units are expected to boost sales and profitability at nearby locations.”
The Wendy’s head-honcho added that a number of the chain’s brick-and-mortar diners ‘do not elevate the brand’ and are a ‘drag from a franchisee financial performance perspective.’
The decision comes a year after the company confirmed 140 of its locations would close doors, claiming they were ‘outdated and located in underperforming areas’.
At the time, then-CEO Kirk Tanner said these now-defunct locations did not help ‘build’ the Wendy’s brand.
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“You look at a brand that’s 55 years old and some of those restaurants are quite out of date,” he explained, per the Associated Press.
The incoming changes came amid the news that Wendy’s third-quarter results were much better than Wall Street initially anticipated.
Total revenue for the quarter to 28 September was down 3 percent to $549.5 million, amid lower advertising funds revenue and lower franchise-royalty revenue, but was above the average analyst estimate compiled by FactSet of $534.7 million, as reported by Market Watch.
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Same-restaurant sales were also down 3.7 percent, beating the FactSet consensus for a 5 percent decline.
The Wall Street Journal also reported that Wendy’s shares dropped 2.6 percent on Friday, with the stock down 46 percent overall this year.
Speaking about the issues his burger chain is facing, Cook said: “We do see more pressure on the lower-income consumer. We continue to see that in the third quarter, and we expect that to continue into the fourth.”
He went on to praise Wendy’s new Biggie Bag value meal that includes a main item, four-piece chicken nuggets, small fries, and a small drink for $5.
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Despite struggles, the iconic brand recently expanded its UK offering, bringing American-style food to Liverpool, Sheffield, and Middlesbrough.
Later this week (12 November), another Wendy’s will open in Basildon, Essex.
Ella Scott