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Wendy’s to shut hundreds more outlets in US after closing 140 last year
Wendy’s to shut hundreds more outlets in US after closing 140 last year: ‘The goal is to…’
Fast-food giant Wendy's has announced plans to close several hundred more restaurants across the United States, just a year after it shut down 140 locations.
Interim CEO Ken Cook told USA Today, that the company would be closing a “mid single-digit percentage” of its outlets. With around 6,000 restaurants still operating nationwide, the closures could affect between 240 and 360 locations. One investor estimated the total at about 300 stores during the call.
“When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective,” Cook said. “The goal is to address and fix those restaurants.”
In some cases, Wendy's plans to upgrade technology and equipment or hand over underperforming outlets to new operators. In others, Cook said, the company will close the restaurants entirely.
According to Cook, the closures will start in the fourth quarter of this year, though the company has not yet revealed which locations will be affected.
The fast-food chain continues to face strong competition from McDonald's, Burger King, and Shake Shack, all of which have reported solid growth in recent quarters. In contrast, Wendy's saw US same-store sales fall by 4.7%, underscoring the need for major changes.
Despite the dip in sales, Wendy's has experienced strong demand for its new chicken tenders, branded as “Tendys.” Cook said some outlets sold out even before official advertising began. “We're encouraged by the response,” he said, adding that the company aims to rebuild its presence in the chicken segment.
Source: LiveMint
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