Wendy's Evaluates Restaurants Amid Sales Challenges
The fast-food chain Wendy's is closely examining its underperforming locations as part of a strategy to reverse a recent decline in sales. The company is collaborating with franchisees to improve, sell, or close weaker restaurants.
Plans for Struggling Locations
During a recent investor call, Wendy's executives outlined possible actions for these sites, including investments to enhance assets, service, and operations, transfers of ownership to other franchisees, or closures. Some closures may begin within this year.
Interim CEO's Comments
Ken Cook, Wendy's interim CEO, stated, “When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective.”
He added, “The goal is to address and fix those restaurants. So in some cases that’s going to mean deploying operational improvements, deploying additional technology or equipment.”
Scope of Potential Closures
Wendy’s currently operates nearly 6,000 locations. Cook indicated that a “mid-single-digit percentage” of U.S. restaurants—fewer than 300—might close following this review.
Focus on Service and Growth
The move signals Wendy’s shift toward enhancing service quality and improving unit-level sales to boost overall performance.
“The goal is to address and fix those restaurants,” Ken Cook emphasized.
Summary: Wendy’s is strategically reviewing its weaker franchises to improve sales through operational upgrades, potential sales, or selective closures affecting up to 300 locations.
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