A major US fast food chain will close 140 branches before Christmas.
Wendy’s has announced it will close a number of “outdated” and “underperforming” locations over the next two months.
The chain, known for its burgers and Frosty desserts, has not yet provided a list of the restaurants that will close.
Wendy’s CEO Kirk Tanner said the decision to close underperforming locations was the result of the company’s weak financial performance.
The company’s third-quarter results were “well below system average,” Tanner said during an earnings call Thursday.
Wendy’s has announced it will close 140 of its “underperforming” restaurants
Wendy’s “conducted a thorough assessment of individual restaurants to ensure they meet our sales expectations, have the profitability to drive growth and deliver the Wendy’s brand experience to customers,” he told investors.
Adding, “Overall, Wendy’s system is incredibly healthy.”
Some Wendy’s fans were outraged at the possibility of their local restaurant taking the hit — complaining that they favor old locations over new ones.
“They’re the only good ones left. The new ones are terrible; especially in LA,” someone wrote on X.
‘Is anyone paying attention to what’s coming? It seems like every week we hear about stores closing,” another added.
It comes after Wendy’s announced the closure of 100 locations in May.
While news of store closures has upset some customers, Tanner said the company will open an equal number of new locations.
The new locations are also not specified – only that they will be in areas expected to generate better sales.
Wendy’s, known for its burgers and Frosty, has upset customers with the prospect of closures
Wendy’s is building approximately 250 to 300 new locations, using new technological capabilities, such as updated kitchen appliances, to make service delivery more efficient.
It means the chain will keep the same number of locations: about 6,000 in the US.
It comes as other competitors have also decided to close locations as restaurant chains continue to struggle to win back customers after years of price increases.
Denny’s recently announced the closure of 150 locations in an effort to combat poor sales.
The chain has announced that there will be 50 store closures this year and the remaining 100 locations will close in 2025.
TGI Friday’s also closed nearly 50 locations last month, amid reports that it is considering bankruptcy due to mounting debt.
