Wendy’s is shutting down some 140 restaurants over the coming months. The chain of restaurants is growing, on average, about the same number across various markets. CEO Tanner shared during the earning call that closures would happen in locations that are older or not pulling in enough business from certain markets. He further pointed out that financial performance for most of them accounted for a steep fall.
Wendy’s would not pinpoint which locations would be closed; however, Tanner made it explicit that they are widely spread in different regions rather than together. Some 100 locations were announced by Wendy’s as of May this year. The number of restaurants closures is expected at Wendy’s, but it would open 250 to 300 stores, against the existing ones, As reported by the New York edition CNN.
Details on the restaurant closures and future expansion plans
This new store is to be clad in a new version-the one unveiled last year-board upgrades to feature new pickups, new modern kitchen equipment, and almost all new interiors. Of late, other staples have joined Denny’s and Shake Shack in closing outlets that are not able to perform.
In general, Wendy’s showed mixed results in their quarterly earnings report, depth reported 0.2%, indicating they fell short of growth Wall Street expected. Nonetheless, Tanner said, the Company remains upbeat about its prospects as a result of strong sales and much better customer feedback on the meal for fans of the Nickelodeon show SpongeBob SquarePants.
LOCATION CLOSURES: In addition to the more than 100 locations announced to be closed in the news, more will be added in May. All of its new stores will be built with the prototype design it unveiled last year, which includes upgraded technology such as new pick-up windows, better fittings and improved kitchen equipment.
Denny’s and Shake Shack have also both announced they will close locations which were underperforming. The Company reported quarterly results Wednesday that missed analysts’ estimates, with same-store sales growth of 0.2%, Tanner was less than impressed, but said the Company remains optimistic.
