Columbus, Ohio (WCMH) – Wendy’s could end up closing hundreds of locations by the end of the year and into 2026.
Interim CEO Ken Cook said on a call with investors on Friday that he estimates a “mid-single-digit percentage” of underperforming U.S. locations will be affected by the closures.
“When we look at the system today, we have some restaurants that are not elevating the brand and are a drag from a financial performance perspective for franchisees,” Cook said. “The goal is to address and fix those restaurants.”
Wendy’s has more than 5,800 locations across the country, which means there could be between 150 and 300 stores closed.
The Company will, in some cases, consider making operational improvements or deploying additional technology and equipment in underperforming stores.
“In other cases, it will mean moving those restaurants to a different operator that is better suited to the success of that restaurant,” Cook said. “In other cases, we will eventually close that restaurant, which will put money back into the pockets of franchisees and enable them to reinvest capital and resources into their remaining restaurants.”
Further updates are expected on the upcoming quarterly earnings call.
Cook said some stores may close before the end of this year. He said company-owned stores are outperforming the system, but sales are still under pressure in the United States
“We’re seeing more pressure on the lower-income consumer,” he said, adding that the $8 bacon cheeseburger has helped customers come back, but has not attracted new customers as much as hoped.
However, Cook said stores have seen lower employee turnover, and digital and delivery services have seen lower rates of cancellations, lost items and refunds. The company is testing additional changes in those spaces.
The company also introduced chicken nuggets and six new sauces at the beginning of the fourth quarter, something Cook said was a success. He pointed out that the demand for tenders was strong and some sites quickly ran out.
However, some customers were not impressed with the new sauce options, with many fans taking to the internet to express their disappointment that the chain I stopped sweet and sour sauce.
The company opened more than 170 new restaurants globally during the first three quarters and plans to continue expanding globally, including in Canada and the United Kingdom.