Wendy's plans to shutter hundreds of restaurants across the US as the fast-food chain tries to reverse a slump in sales. Interim CEO Ken Cook said on Friday that a "mid-single-digit percentage" of Wendy's roughly 6,000 US outlets—estimated at 200 to 350 locations—will close their doors, set to start this year and stretching into next, per CNN. The restaurants on the chopping block are those described as "consistently underperforming," which the company says have been damaging its overall performance.
Some restaurants won't be closed but may be transferred to new operators or see an investment in new technology or equipment to help things along, Cook said, per USA Today. He told analysts the moves are intended to "strengthen the system" and help franchisees funnel more resources into restaurants that are doing better, per CNN. The company hopes that by trimming its weakest outlets, sales and profitability at nearby Wendy's locations will get a boost. There's no word yet on exactly which specific restaurants will close. This isn't the first wave of closures for the chain, which shut down 140 locations last year for similar reasons.
The announcement comes as Wendy's reported another disappointing quarter, with US same-store sales dropping 4.7%. Meanwhile, competitors like McDonald's, Burger King, and Shake Shack all reported sales growth, helped along by aggressive promotions and marketing. Despite the challenges, Cook pointed to strong demand for Wendy's new chicken tenders—nicknamed "Tendys"—as a bright spot. Some outlets reportedly ran out before the product was even advertised. Cook called the launch a promising sign as Wendy's tries to regain ground, especially in the chicken segment. Wendy's shares fell 2.6% on Friday, reports the Wall Street Journal.
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