Wendy’s is making major cuts to its U.S. footprint, announcing plans to close up to 300 restaurants in the coming months. The decision comes as the company tries to clean up underperforming locations and refocus its strategy after a year of slumping sales and rising operational costs.
The closures will begin in the fourth quarter and impact what the company calls a “mid-single-digit percentage” of its U.S. locations. With 6,011 restaurants nationwide, that could mean 5% or more of stores getting the axe, the Associated Press confirms.
This latest wave follows 240 closures earlier in 2024, part of a deeper effort to move away from aging locations that no longer reflect the brand Wendy’s wants to project.
“We have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective. The goal is to address and fix those restaurants,” said interim CEO Ken Cook, who stepped in after former CEO Kirk Tanner left for Hershey Co.
Cook said the company may upgrade certain stores with new tech or equipment, transfer ownership, or shut them down completely.
Same-store sales in the U.S. dropped 4% year-over-year, and Wendy’s total revenue fell 2% to $1.63 billion. Net income also dipped 6% to $138.6 million.
Even with $5 and $8 value deals, which briefly boosted traffic, Wendy’s is struggling to pull in new customers.
“We’re not doing a good job of bringing in new customers,” Cook admitted.
