Wendy’s announced it will close 140 restaurant locations across the U.S. by the end of the year, citing shifting customer preferences and rising operational costs.
The closures, affecting underperforming locations, are part of the fast-food chain’s effort to streamline operations amid increased competition and inflation-related challenges, FOX Business reported.
The decision follows Wendy’s recent quarterly report, in which the company indicated that labor, ingredients, and utilities expenses have surged, squeezing profit margins. Wendy’s, which operates over 6,500 locations globally, emphasized its commitment to a leaner, more efficient business model that prioritizes high-performing restaurants.
Wendy’s CEO Todd Penegor noted that the closures would allow the chain to reallocate resources to support existing locations and explore new opportunities, including enhanced digital ordering and delivery services.
“Our goal is to focus on areas where we see the strongest growth potential,” Penegor said, highlighting the company’s shift towards tech-focused services to meet evolving consumer habits, FOX Business reported.
The closures may impact employees, but Wendy’s stated it will offer support and job placement assistance wherever possible. Analysts suggest that other fast-food chains facing similar economic pressures may follow suit as they attempt to reduce costs and adjust to changing market conditions.
As Wendy’s adapts to a competitive landscape, the company plans to invest in high-demand regions while exiting less profitable markets. This strategic shift is expected to help Wendy’s maintain stability in an increasingly challenging economic environment.
The article was written with the assistance of artificial intelligence.