"Wendy's announced plans to close a "mid-single-digit percentage" of its underperforming U.S. store locations, or 200 to 350 of some 6,000 locations, during its quarterly earnings call on Friday. The news comes as the fast-food giant reports third-quarter profits of $44.3 million and $549.5 million in revenue, beating analyst expectations by 2.71%. The company's adjusted earnings per share (EPS) came in at 24 cents, versus expectations of 20 cents."
"International business delivered strong system-wide sales growth, with international net unit growth expected to come in over 9% in 2025. Shares in Wendy's Co. ( NASDAQ: WEN) were up about 2% in midday trading on Friday, after Wendy's stock surged 11.66% in pre-market trading. On the earnings call, Interim CEO and CFO Ken Cook said the shutterings will begin this year and continue through 2026."
"He explained some current restaurants "do not elevate the brand" and are "a drag from a franchisee financial performance perspective." The goal is to address and fix those restaurants by improving operations, through additional technology or equipment. In other cases, closing the restaurant "will put money back in franchisees' pockets and enable them to reinvest both capital and resources in their remaining restaurants.""
Wendy's plans to close a mid-single-digit percentage of underperforming U.S. restaurants, roughly 200 to 350 of about 6,000 locations, beginning this year through 2026. The company posted third-quarter profits of $44.3 million and revenue of $549.5 million, with adjusted EPS of $0.24 beating expectations. International business showed strong system-wide sales growth and international net unit growth is expected to exceed 9% in 2025. Closures will be handled case-by-case; some locations will receive operational fixes via technology or equipment, while others will close to free capital and resources for reinvestment in remaining restaurants. Closures aim to boost sales and profitability at nearby locations.
Read at Fast Company
Unable to calculate read time
Collection
[
|
...
]