One of America's Largest Fast Food Chains Plans to Close Hundreds of Restaurants
Fast food chains are facing tough times as consumer preferences shift toward healthier options and rising meal costs impact sales. Several well-known brands, including Jack-in-the-Box, Starbucks, KFC, Del Taco, and Pizza Hut, have experienced significant store closures or sales declines recently.
Following a challenging 2024 for sit-down restaurant chains, marked by multiple bankruptcies, Wendy's has announced it will also reduce its number of locations.
Wendy's Store Closures Announcement
Interim CEO Ken Cook shared during Wendy's Q3 earnings call that the chain plans to close a "mid single-digit percentage" of its U.S. stores. With just over 5,900 locations at the end of 2024, this suggests approximately 300 stores may be shuttered soon. This move comes after closing 140 locations the previous year.
"Wendy's as a whole is healthy, and a smaller percentage of underperforming stores were dragging down the brand." – Ken Cook
Plans for Renovation and Technology Upgrades
To improve performance, Wendy's is also focusing on renovating existing stores and integrating new technology aimed at boosting sales in struggling locations.
These steps reflect Wendy's efforts to adapt and strengthen its position amid industry-wide challenges.
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