Wendy's Announces Major Restructuring with Hundreds of US Closures
Fast-food giant Wendy's has revealed plans for a significant restructuring, which includes the closure of hundreds of its restaurants across the United States. The company intends to shut between 5 per cent and 6 per cent of its US outlets, translating to approximately 298 to 358 locations, during the first half of this year.
Driving Factors Behind the Decision
This strategic move comes in response to a disappointing fourth-quarter performance, where global same-store sales experienced a sharp decline of 10 per cent. The challenging economic environment, marked by high inflation, has pressured consumer spending, prompting Wendy's to reassess its operational footprint.
Focus on Value Deals to Attract Customers
In an effort to draw in inflation-weary customers, Wendy's is intensifying its emphasis on value-oriented offerings. The company has introduced a new permanent menu called 'Biggie Deals', designed to provide affordable options and enhance customer loyalty amidst rising costs.
Financial Outlook and Market Reaction
Despite the closures and sales challenges, Wendy's projects that global systemwide sales will remain relatively flat for the current year. Following the announcement, the company's shares saw a notable increase, rising by nearly 5 per cent, indicating investor confidence in the restructuring strategy.
This development positions Wendy's as the latest fast-food chain to undertake large-scale closures in a competitive and evolving market landscape.
