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Wendy's said it plans to close hundreds of U.S. restaurants by the end of this year. What they're saying: "In terms of system optimization, based on the information we have today, I'd estimate around a mid-single digit percentage of US restaurants would end up closing," Ken Cook, Wendy’s Interim Chief Executive Officer & Chief Financial Officer said on an earnings call last week. RELATED: Denny’s to go private in $620 million acquisition deal What's next: Cook said that Wendy’s will collaborate closely with its franchisees in a structured, step-by-step way to decide how quickly to move forward, ensuring that every choice supports the company’s long-term success. Cook further explained that Wendy’s is collaborating individually with franchisees to improve the business by addressing underperforming restaurants. As part of "Project Fresh," the company is reviewing each location’s financial and customer performance to decide whether to improve, transfer, or close it—freeing up capital for franchisees to reinvest and strengthen the overall system. RELATED: Steak 'n Shake to install 'tallest and biggest' American flags at restaurants nationwide The backstory: Last year, Wendy’s closed 140 U.S. restaurants. U.S. restaurant sales saw little growth last year as many consumers pushed back against rising menu prices. Wendy’s same-store sales – or sales at locations open at least a year – were up less than 1% in the U.S. in the first half of this year. Over the summer, McDonald's franchisees cut the cost of combo meals to revive the chain’s image as an affordable option at a time when many consumers are keeping a close eye on their wallets, according to FOX Business. A $5 breakfast and $8 Big Mac and McNugget combo meal special will also run later this year, with the company advertising them as Extra Value Meals.
