WHERE’S THE BEEF?: Fast food giant plans to close hundreds of US stores next year

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FROM FOX BUSINESSFast food giant Wendy’s plans to close hundreds of its U.S. stores next year as part of a broader effort to revive its domestic business, which has been under pressure from slowing sales.

Interim CEO Ken Cook said during the company’s earnings call on Friday that a “mid-single-digit percentage” of its 6,011 U.S. restaurants are expected to close next year. A mid-single-digit percentage is about 4% to 6%, which means the least number of closures would be 241 stores.

This comes as Wendy’s executives said that its business and sales “remain under pressure” and that it is “acting with urgency” to return sales at its U.S. stores to growth.

In its latest fiscal quarter, global sales were down 2.6% and sales at U.S. locations fell 4.7%. The company blamed the drop in U.S. sales largely on fewer customer visits, though this was partially offset by higher spending per order.


During its earnings call, the company stated that it is achieving “meaningful progress on key actions to enhance the customer experience,” with these efforts already yielding results in its U.S. company-operated restaurants.

Instead of expanding its store count, Wendy’s is prioritizing sales growth at existing U.S. locations.

Mike Netter, a social media influencer, commented on the closures. He suggested that the move away from fast food isn’t due to economics, but ingredients and quality.

“To me this isn’t about the economy….

”In the last 10 years, fast food prices have gone up an average of 63%, with McDonald’s over 100%. There’s nothing fast and nothing food about it anymore.

“People are waking up. They’re reading ingredients, demanding better quality, and tired of paying premium prices for poor service and wrong orders. For the same price, you can walk into a fast-casual restaurant and get something fresher, healthier, and actually enjoyable.

”This isn’t a collapse of the consumer engine it’s an evolution of consumer awareness. People are choosing better. (what a concept) And businesses that can’t adapt? They’re not victims of the economy. They’re victims of their own complacency.

”All people still need to eat and are still spending money on food, they just want better value one way or another. I avoid [Wendy’s and McDonald’s] because I want to live longer.”

What do you think? Do you still eat fast food? Are you happy with the ingredients and quality? Let us know in the comments.

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