Wendy's is closing hundreds of restaurants throughout the U.S.
Wendy's announced the news in an earnings call on November 7. According to a transcript of the earnings call on Investing.com, the chain revealed that revenue is up and it outperformed expectations, but that's due to international sales.
The company is focusing on a venture it calls Project Fresh, which was announced in October.
"Across the globe, Wendy’s continues to resonate well with our customers as we execute our globally great, locally even better approach," Ken Cook, interim CEO, said in the earnings call.
However, the company plans to close in the “mid single-digit percentage” of stores in the U.S. because of declining sales there. According to USA Today, as Wendy's has 6,000 locations, that would mean the chain is going to close roughly 240 to 360 restaurants.
"When we look at the system today, we have some restaurants that do not elevate the brand and are a drag from a franchisee financial performance perspective," Cook said.
The company is expanding internationally and expects growth overseas of 9 percent. In the U.S., though, there are challenges, specifically "a 4.7% decline in U.S. same restaurant sales."
According to Cook, to meet the challenges, the company will change hours at some stores but will also "close consistently underperforming restaurants."
"Business, sales remain under pressure, and we are acting with urgency to return U.S. comp sales to growth," Cook said. He outlined "three key initiatives: knowing our customers better, simplifying our programming and execution, and working more closely with our franchisees as one Wendy’s."
According to Cook, Project Fresh means using "the highest quality ingredients, like our 100% fresh, never frozen beef, our Applewood Smoked Bacon, and our new Barrel-Breaded Chicken Tenders."
Wendy's is opening more stores overseas, "having signed new agreements for more than 320 international restaurants year to date, including a recent agreement to open 50 restaurants in Central Mexico. Mexico remains our strategic growth hub for Latin America," Cook said in the transcript.