Wendy's to close 140 restaurants by the end of the year.
Fast-food giant Wendy's is shuttering 140 underperforming locations through the end of 2024 as it looks to improve its "restaurant footprint and overall system health."
To counter the closures, though, the Ohio-based company is working to replace many of these units with "new restaurants at better locations with significantly improved sales and profitability," Wendy's CEO Kirk Tanner told analysts on its third-quarter earnings call.
The company thoroughly reviewed individual restaurants to ensure they meet sales expectations and are profitable enough to support growth, and said that the locations closing are "outdated and in underperforming areas," with operating margins far below the system average, Tanner said.
"I think when you think about strengthening our system, you look at a brand that's 55 years old and some of those restaurants are just out of date," Tanner said.
Wendy's anticipates the total closures in 2024 to be "offset by new restaurant openings this year, leaving our net unit growth approximately flat compared to the prior year," Tanner said, adding that the company is confident that it will achieve significant accelerated unit growth rate of 3% to 4% in 2025.
(Maybe update that logo … couldn’t hurt …)
https://www.foxbusiness.com/lifestyle/wendys-close-140-restaurants-end-year
No comments:
Post a Comment