Wendy’s will close between 200 and 350 restaurants across the United States as part of a major restructuring plan aimed at reversing declining sales, the company announced Friday, according to CNN.
During a quarterly earnings call, interim CEO Ken Cook told analysts the closures represent a “mid single-digit percentage” of the brand’s roughly 6,000 U.S. restaurants. The move will primarily affect underperforming locations that have weighed down overall results.
The shutdowns will begin this year and continue through 2026, though Wendy’s did not disclose which specific restaurants will be impacted.
“This action will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook said. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”
The decision follows a similar move last year when the chain closed 140 restaurants deemed underperforming.
Wendy’s has struggled to keep pace in a challenging fast-food landscape. U.S. same-store sales fell 4.7%, while competitors such as McDonald’s, Burger King, and Shake Shack have reported stronger earnings, buoyed by promotions and aggressive marketing campaigns, CNN reported.
Despite the challenges, Cook cited optimism around Wendy’s new chicken tenders — dubbed “Tendys” — which have sold out at some locations before official advertising campaigns began.
“We’re looking forward to continuing that momentum,” Cook said. “This is an encouraging first step as we look to reestablish our leadership position in chicken.”
Read the original article on cleveland.com.