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Wendy's plans more targeted closures as U.S. sales keep falling
The chain has shuttered a net 245 restaurants this year and reported a 6.5% worldwide sales decline in the latest quarter, driven by an 8.2% drop in the U.S.
Wendy's is continuing to shrink its restaurant footprint after another weak quarter, with CEO Bob Wright saying further closures will be more targeted going forward. Bisnow reported that Wendy's has already closed a net 245 restaurants this year and plans to keep reducing its portfolio, according to comments made during its Q2 earnings call.
Wright said the company will work alongside franchisees, using closures selectively when “trade area” demand has changed and a site is no longer viable. Bisnow also noted that Wendy's previously described some closures as a broader system program, but is now aiming to tailor them to local conditions.
On the sales side, Wendy's reported worldwide sales fell 6.5% quarter over quarter, largely due to an 8.2% decline in the U.S. Bisnow said it marked Wendy's sixth straight quarter of U.S. sales contraction.
The outlet added that Burger King has surpassed Wendy's as the nation's second-largest burger chain. Bisnow cited that Burger King sales rose 8.5% last quarter, while Wendy's has been scaling back after announcing plans to reduce its footprint by roughly 6% in February, following an 11.3% sales drop in the fourth quarter.