Wendy’s will close hundreds of restaurants in the United States. The fast food chain’s Interim CEO Ken Cook said on Nov. 7 that a “mid single-digit percentage” of Wendy’s U.S. eateries, or as many as 200 to 350 restaurants, are slated to shut down after posting “sustained low sales.”
“These actions will enhance the system and drive long-term growth for franchisees … so they can invest more in their other restaurants,” Cook said during the company’s quarterly earnings call, according to the CNN. “Closures of poorly performing stores are expected to increase sales and profitability at adjacent locations.”
The company didn’t give a list of the specific locations that will close, but Cook said that several of the chain’s restaurants “do not elevate the brand” and represent a “drag from a franchisee financial performance perspective.”
The Interim CEO conceded in an earnings call in August, per CNN, that the brand is “not happy with our sales performance.” The company — whose stock is down almost 50% this year — said then that it had a “comprehensive strategic plan,” called Project Fresh, to revamp the brand with updated marketing and menu changes led by former Taco Bell CEO Greg Creed.
“Wendy’s board of directors and management team are disappointed that the current valuation of the company does not reflect the opportunity available to Wendy’s, and we have been focused on proactive steps to place it on the right path to deliver value for our franchisees, employees and shareholders,” said Art Winkleblack, chairman of Wendy’s Board, in an October press release.
And execution is happening, and we believe Project Fresh will make Wendy’s number one in the industry, that guests crave, franchisees proudly run, teams appreciate, and creates substantial shareholder value.”
One of the food items that’s guided Wendy’s back to safety has been its new chicken tenders, Tendys.
“We are eager to build on this momentum and pleased that our acquisition is off to a successful start as we work toward re-establishing JBS as the undisputed leader in chicken,” Cook said of the new staples.
The latest round of closures comes after Wendy’s said a year ago that it expected to close 140 restaurants that were “outdated and not up to our current image” — on top of 100 closings the company had announced six months earlier.
“They’re just in places that don’t drive our brand,” then-CEO Kirk Tanner said, speaking in October 2024, according to the Associated Press and Mid Breaker. “You look at a 55-year-old brand and some of those restaurants are pretty dated.”
