Bad news for Baconator fans… Wendy’s is set to close hundreds of restaurants across the United States.
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Wendy’s Interim CEO Ken Cook dropped the news on Friday: a “mid single-digit percentage” of their U.S. burger joints – 200 to 350 locations – are slated for closure by the end of 2025. Cook explained that the locations were “consistently underperforming” in sales.
“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook explained during the company’s quarterly earnings call, according to CNN. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”
The company did not provide a list of the exact locations. However, Cook explained that several of the chain’s restaurants “do not elevate the brand” and are a “drag from a franchisee financial performance perspective.”
The Interim CEO admitted during an August earnings call, per CNN, that the company is “not happy with our sales performance.”
Wendy’s Introduced ‘Project Fresh’ Earlier This Year After Their Stock Fell Nearly 50%
Meanwhile, after losing nearly 50% of its stock value this year, Wendy’s announced a “comprehensive strategic plan” called “Project Fresh” to improve marketing and update its menu, led by former Taco Bell CEO Greg Creed.
“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,” Art Winkleback, chairman of Wendy’s board, explained in the October press release.
“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,” he added.
The fast food chain has also introduced new items, just as their chicken tender offering, “Tendy’s.”
“We’re looking forward to continuing that momentum, and this is an encouraging first step as we look to reestablish our leadership position in chicken,” Cook said.