Wendy’s plans to close hundreds of U.S. restaurants to boost profits and improve appeal. The company expects a “mid-single-digit percentage” of its 6,011 U.S. locations to be affected, potentially resulting in 300 closures. This move follows the closure of 240 U.S. Wendy’s locations in 2024 due to outdated facilities.

Ken Cook, Wendy’s interim CEO, aims to improve traffic and profitability by closing underperforming restaurants. Some locations will undergo improvements, while others may change ownership or close entirely. U.S. fast food chains struggle to attract lower-income consumers amid rising inflation, impacting Wendy’s sales and revenue this year.

In the first nine months of 2021, Wendy’s reported a 4% decline in U.S. same-store sales compared to last year, with revenue falling 2% to $1.63 billion. Net income also decreased by 6% to $138.6 million. To combat this, Wendy’s plans to emphasize value and ingredient freshness in marketing efforts to attract new customers.

Following the announcement, Wendy’s shares dropped 7% on Friday and another 5% on Monday afternoon. The company’s new CEO, Ken Cook, is focused on addressing financial and customer service issues to drive traffic and improve profitability at its remaining U.S. locations.

Read more at Yahoo Finance: Wendy’s to close hundreds of US stores in bid to halt falling profit