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Wendy's closes 289 US restaurants in first half as franchise health slips
Wendy's said franchisee health is pressured by US sales declines, while same-restaurant sales fell 7% in the second quarter.
Wendy's is closing a large number of US locations as it tries to stabilize performance against bigger rivals and fast-growing competitors, according to discussion tied to its second-quarter results.
In the quarter's earnings call, Wendy's new CEO Bob Wright pointed to franchisee pressure linked to sales declines, saying closures have been addressed more systematically in the past but that the company will take a more targeted approach going forward.
Wright said Wendy's will work alongside franchisees if they need help, including closing a few restaurants in order to make a portfolio healthier when certain trade areas are no longer viable.
The company reported that US same-restaurant sales fell 7% in the second quarter, versus a 2.3% decline a year earlier, and that adjusted operating profits dropped 13.2% year over year, per Yahoo Finance.