America's Major Fast Food Chain Plans Hundreds of Closures
Fast food chains are facing challenges as consumers opt for healthier choices and rising meal costs impact the industry. Several iconic brands have reported setbacks recently.
Industry-Wide Struggles
This year, fast food chains like Jack-in-the-Box and Starbucks announced the closure of hundreds of stores. Meanwhile, KFC, Del Taco, and Pizza Hut have all experienced declines in sales. These issues followed a difficult 2024 for sit-down restaurant chains, with several popular names declaring bankruptcy within months of each other.
Wendy's Plans to Close Stores
Wendy's is now joining the list of chains reducing their footprint. Interim CEO Ken Cook revealed during the company’s Q3 earnings call that the chain intends to close a “mid single-digit percentage” of its total stores.
According to Cook, Wendy’s ended 2024 with just over 5,900 U.S. locations, so around 300 stores could be shutting down soon.
This move follows a smaller downsizing last year when 140 locations were closed.
Brand Health and Future Plans
Despite the closures, Cook expressed confidence in Wendy's overall health, pointing out that only a small percentage of underperforming stores were affecting the brand negatively. The company plans to renovate stores and introduce new technology aimed at boosting sales at struggling locations.
Summary
Wendy's is reducing its U.S. stores by about 300 while focusing on store renovations and technology upgrades to enhance sales and maintain brand strength.