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Wendy’s to Close Hundreds of Locations by 2025 Amidst Sales Slump
NATIONAL – Fast-food giant Wendy’s announced Monday its plans to shutter approximately 300 locations by the end of 2025. The move comes as the company seeks to revitalize its brand and address declining sales, particularly within the U.S. market.
Ken Cook, interim CEO of Wendy’s, revealed during an earnings call that the closures would affect a “mid single-digit percentage” of the company’s 6,000 global restaurants, translating to an estimated 240 to 360 units. An investor on the call further clarified the target of around 300 locations.
The decision follows the recent expansion of the chain into Ireland, with its first restaurant opening in County Cork, offering the same popular menu items as its U.S. counterparts.
Cook explained the rationale behind the closures, stating, “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. The goal is to address and fix those restaurants.”
While specific locations slated for closure were not disclosed, the company confirmed these changes would occur before the end of next year.
The closures are directly linked to a downturn in sales, with a global decrease of 2.6% reported. This decline was primarily driven by a more significant 4.7% drop in sales within the Uniteds States. Cook attributed this slump to intensified competition within the fast-food industry and increased pressure from consumers.
In response to these challenges, Wendy’s is launching “Project Fresh,” a new strategic plan aimed at reinvigorating the brand.
Art Winkleback, chairman of Wendy’s board, expressed dissatisfaction with the company’s current valuation in an October press release. “Wendy’s board of directors and management team are dissatisfied with the current valuation of the company and have been working to put the company on the right path to create value for our franchisees, employees and shareholders,” Winkleback stated.
He added, “Execution is underway and we are confident that Project Fresh will position Wendy’s as the industry leader – one that guests love, franchisees are proud to operate, teams are excited to be a part of, and creates significant value for our shareholders.”