Wendy's to close 300 stores across US

By BEN SHIMKUS, US CONSUMER REPORTER

Published: | Updated:

Wendy’s is closing up to 300 restaurants across the US as the burger chain scrambles to cut costs and win back customers who say its meals have simply become too expensive. The Ohio-based company announced the closures on Friday as part of a turnaround plan to tackle plunging sales. It warned Wall Street that revenue at its 6,000 US locations tumbled 4.7 percent over the past three months.

Wendy’s is closing up to 300 restaurants across the US as the burger chain scrambles to cut costs and win back customers who say its meals have simply become too expensive. The Ohio-based company announced the closures on Friday as part of a turnaround plan to tackle plunging sales. It warned Wall Street that revenue at its 6,000 US locations tumbled 4.7 percent over the past three months.

That's the equivalent of about 1.7 million fewer Junior Cheeseburgers sold than this time last year. Like many of its rivals, Wendy’s — which also shut 140 locations last year — is now battling a new reality: Americans are cutting back on takeout as prices soar, paychecks shrink, and competitors slash prices. Experts say the reasons are painfully clear: Wendy’s food has become too pricey, and too many of its restaurants look and feel stuck in the past.

That's the equivalent of about 1.7 million fewer Junior Cheeseburgers sold than this time last year. Like many of its rivals, Wendy’s — which also shut 140 locations last year — is now battling a new reality: Americans are cutting back on takeout as prices soar, paychecks shrink, and competitors slash prices. Experts say the reasons are painfully clear: Wendy’s food has become too pricey, and too many of its restaurants look and feel stuck in the past.

Analysts say the slump comes down to two things that infuriate customers: higher prices and aging, rundown restaurants that make ordering a chore. ‘Fast food has moved from being an inexpensive indulgence to an expensive option,’ said Neil Saunders, managing director at GlobalData. ‘So a lot of consumers are cutting back.’ Wendy’s once promised a cheap, cheerful meal — but now even a burger and fries can set you back more than $12. Baconator combos top $12.39 and Dave’s Double meals are over $11 — prices that once bought a sit-down dinner.

Analysts say the slump comes down to two things that infuriate customers: higher prices and aging, rundown restaurants that make ordering a chore. ‘Fast food has moved from being an inexpensive indulgence to an expensive option,’ said Neil Saunders, managing director at GlobalData. ‘So a lot of consumers are cutting back.’ Wendy’s once promised a cheap, cheerful meal — but now even a burger and fries can set you back more than $12. Baconator combos top $12.39 and Dave’s Double meals are over $11 — prices that once bought a sit-down dinner.

Jerry Thomas, CEO of research firm Decision Analyst, said Wendy’s problems run deeper than high prices. 'Wendy's is suffering from underinvestment in its restaurants,' Jerry Thomas, CEO of research firm Decision Analyst, said. 'It's now paying the price for years of neglect.' Customers say they’re turned off by tired-looking restaurants and outdated tech that slows everything down — especially compared to McDonald’s and Chick-fil-A, where mobile and kiosk ordering runs seamlessly.

Jerry Thomas, CEO of research firm Decision Analyst, said Wendy’s problems run deeper than high prices. 'Wendy's is suffering from underinvestment in its restaurants,' Jerry Thomas, CEO of research firm Decision Analyst, said. 'It's now paying the price for years of neglect.' Customers say they’re turned off by tired-looking restaurants and outdated tech that slows everything down — especially compared to McDonald’s and Chick-fil-A, where mobile and kiosk ordering runs seamlessly.

Wendy’s, long the nation’s third-largest burger chain, is now rolling out a turnaround dubbed Project Fresh — a plan to close weaker restaurants, refresh stronger ones, and cut about $20 million in operating costs. Announcing the closures, interim Wendy’s CEO Ken Cook said the company hopes to lift sales and profits by investing more in stores that perform well and closing those that don’t. The idea is that stronger, busier restaurants will benefit once struggling ones are out of the mix — while customers notice cleaner, faster and more consistent service where it matters most.

Wendy’s, long the nation’s third-largest burger chain, is now rolling out a turnaround dubbed Project Fresh — a plan to close weaker restaurants, refresh stronger ones, and cut about $20 million in operating costs. Announcing the closures, interim Wendy’s CEO Ken Cook said the company hopes to lift sales and profits by investing more in stores that perform well and closing those that don’t. The idea is that stronger, busier restaurants will benefit once struggling ones are out of the mix — while customers notice cleaner, faster and more consistent service where it matters most.

Sticker shock has upended one of the fast-food industry’s oldest dynamics — when grocery prices soar, drive-thru traffic typically climbs. Not this time. The chain’s struggles mirror a wider fast-food slowdown as shoppers rethink what counts as value. Sweetgreen's growth has halted , Chipotle is saying its customers are no longer lining up out the door, and Starbucks is struggling to turn around several quarters of sales declines, forcing the cafe chain to close hundreds of US stores.

Sticker shock has upended one of the fast-food industry’s oldest dynamics — when grocery prices soar, drive-thru traffic typically climbs. Not this time. The chain’s struggles mirror a wider fast-food slowdown as shoppers rethink what counts as value. Sweetgreen's growth has halted , Chipotle is saying its customers are no longer lining up out the door, and Starbucks is struggling to turn around several quarters of sales declines, forcing the cafe chain to close hundreds of US stores.

Struggles at Denny's and Pizza Hut forced their owners to sell both brands . Meanwhile, those that have cut prices are thriving. Chili's has staged a significant comeback on budget meal deals, while McDonald's has announced two straight quarters of growth on the back of promotions. Wendy's didn't immediately respond to the Daily Mail's request for comment.

Struggles at Denny's and Pizza Hut forced their owners to sell both brands . Meanwhile, those that have cut prices are thriving. Chili's has staged a significant comeback on budget meal deals, while McDonald's has announced two straight quarters of growth on the back of promotions. Wendy's didn't immediately respond to the Daily Mail's request for comment.

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