Wendy’s, the popular fast-food chain, is planning to close about 5 to 6 percent of its U.S. restaurants this year. With nearly 6,000 locations across the country, that could mean around 360 closures.
The company has about 296 sites in California. In an earnings call, Wendy’s interim CEO, Ken Cook, explained that shutting down underperforming locations allows franchisees to focus on more profitable ones. This shift comes after a difficult fourth quarter, where Wendy’s reported a 5.5 percent drop in revenue, totaling $543 million.
To adapt, Wendy’s is concentrating on new menu items and investing more in digital and social platforms. Cook mentioned that they learned they focused too much on temporary price deals instead of consistent value. As a result, they introduced a “Bigger Deals” menu with three price tiers, aiming to provide better regular offerings.
Starting this month, Wendy’s will launch a new cheesy bacon cheeseburger, along with chicken tenders and upgraded sauces that customers seemed to enjoy last year. Cook emphasized the importance of innovation in both hamburgers and chicken, signaling a return to their core strengths.
This move comes at a time when the fast-food industry is experiencing shifts. According to a survey by the National Restaurant Association, 60% of operators are worried about increased competition. As consumers become more health-conscious, chains like Wendy’s are adapting their menus to attract a wider audience.
In 2024, Wendy’s had already closed 240 locations. As they continue to evolve, observing this changing landscape can provide insights into the fast-food world and its response to shifting customer needs.
For more on these developments, you can check out Wendy’s official updates here.
