"Wendy's plans to close hundreds U.S. restaurants over the next few months in an effort to boost its profit. The Dublin, Ohio-based chain said during a conference call with investors Friday that it planned to begin closing restaurants in the fourth quarter of this year. The company said it expected a mid-single-digit percentage of its U.S. stores to be affected, but it didn't give any more details."
"If 5% of those locations were impacted, it would mean 300 store closures. The new round of closures comes on top of the closure of 240 U.S. Wendy's locations in 2024. At the time, Wendy's said that many of the 55-year-old chain's restaurants are simply out of date. Ken Cook, Wendy's interim CEO, said Friday the company believes closing locations that are underperforming whether it's from a financial or customer service perspective will help improve traffic and profitability at its remaining U.S. restaurants."
Wendy's plans to close a mid-single-digit percentage of its U.S. restaurants beginning in the fourth quarter, potentially totaling hundreds of locations. The chain ended the third quarter with 6,011 U.S. restaurants; a 5% impact would equal about 300 closures. The new round adds to 240 U.S. closures in 2024, with many older, 55-year-old restaurants described as out of date. Closures aim to remove underperforming units to improve traffic and profitability. Responses include renovating struggling stores with technology or equipment, transferring ownership to other operators, or closing restaurants. U.S. same-store sales fell 5% in July–September amid inflation and price sensitivity.
Read at www.mercurynews.com
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