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Wendy's, one of the nation's largest fast-food chains, expects to close hundreds of restaurants under a company-wide overhaul. Interim Chief Executive Officer & Chief Financial Officer Ken Cook said in an earnings call on Friday he anticipates "a mid-single digit percentage" of U.S. restaurants will end up closing in the months ahead. That estimate would amount to roughly 300 locations of the Ohio-based chain's around 6,000 U.S. restaurants. Closures are expected to begin next year and continue through 2026. It's unclear which locations will be shuttered, with Wendy's saying it is "taking a hard look at underperforming restaurants" and that it will work with franchisees "on a case by case basis to figure out the best path forward." "Taking a hard look at underperforming restaurants in our system, from both the financial and customer experience perspective, and working with franchisees to improve those, transfer those to another operator or potentially closing them, which will help unlock capital for franchisees to further reinvest in the system," Cook said during the earnings call. The announcement comes as fast food chains struggle to attract customers who have cut back amid price increases and inflation. Wendy's is looking to make further changes after reporting a 2.6% decrease in global systemwide sales and a 4.7% decline in same-restaurant sales growth during the third quarter, company officials revealed during Friday's earnings call. The Ohio-based company has undertaken a major effort to spur growth by launching "Project Fresh," a strategic plan designed to revitalize the brand, reignite growth and accelerate profitability. Nearly a year earlier, the then-CEO announced the closure of 140 restaurants, with Wendy's saying the restaurants in question were outdated and in "underperforming areas." Despite the new round of closures, Cook, the interim CEO, said Wendy's remains focused on improving restaurant-level economics. "I think we'll work through a detailed and programmatic process with our franchisees to determine the best pace of that and make sure that we are making the best decisions for the long-term health of the overall system," he stated.
