Wendy’s reports 289 US restaurant closures in H1 amid declining sales and franchisee profitability concerns.
Wendy’s (WEN) closed 289 US locations in the first half of 2024, reflecting ongoing struggles against competitors like McDonald’s (MCD) and Taco Bell. The closures account for roughly 5% of its domestic footprint, currently at about 5,700 restaurants.
Sales declines have pressured franchisee profitability, prompting a shift in strategy. CEO Bob Wright indicated a more targeted approach to closures, focusing on improving portfolio health and supporting struggling operators. The company plans to assist franchisees in closing underperforming locations where trade areas are no longer viable.
The closures follow two years of competitive challenges, with Wendy’s facing pressure from both established chains and upstarts like Shake Shack. Analysts noted the trend may continue as the company addresses systemic sales declines.