Wendy’s Closing 140 More Locations To Modernize Restaurants
Wendy’s To Close 140 More Locations In Efforts To Modernize Restaurants
Source: Mike Kemp / Getty
Wendy’s announced plans to close 140 U.S. restaurants by the end of this year, adding to the 100 closures it had already announced in May. However, these closures will be balanced by the opening of 250 to 300 new restaurants across the U.S., according to a conference call with investors on Thursday. Wendy’s President and CEO, Kirk Tanner, explained that the underperforming locations being closed are “just in locations that don’t build our brand,” noting that some are outdated.
The Dublin, Ohio-based chain, which ended the third quarter with 7,292 locations (over 80% in the U.S.), did not provide specific details about which locations will close. Wendy’s shares rose 3.5% in midday trading on Friday following the news.
Amidst minimal U.S. restaurant sales growth, largely due to consumer resistance to rising prices, Wendy’s reported a modest increase of less than 1% in same-store sales during the first half of the year. The closures and slow sales are part of a wider trend affecting the restaurant industry: in October, Denny’s announced it will close 150 locations by 2025, and Red Lobster filed for bankruptcy protection in May after shuttering dozens of stores.
source: The DMV Daily
READ MORE:
Get Breaking News & Exclusive Content in Your Inbox: