Although President Trump has been making efforts to improve the US economy, inflation and bad economics from the previous four years have taken a toll on numerous sectors of the economy.
The steady rise in prices due to inflation has made it more difficult for the average American to afford fast food. In the past, it was a cheap source of food for families to pick up when they didn’t have time to prepare a meal. Now it has become more of a luxury item for consumers.
As a result, fast food companies are experiencing a decline in sales, which is impacting their bottom line.
Wendy’s announced earlier this week that the company plans to close hundreds of their US locations in 2026 in an effort to maximize its resources.
Fast 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.
FOX Business reached out to Wendy’s for comment.
“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.” Fox Business reported.
The company’s intention is to focus on the quality of each store instead of expanding with more locations. Their initiative is called “Project Fresh” which was designed to help increase profits, and to help keep the locations open for the long term.
The fast-food industry in general is feeling the economic effects as their consumers are cutting back since they have less money to spend.
Lower income earners typically will have less money to spend on eating out, in order to pay for the rising cost of living, which includes housing and other household goods including groceries.
This change is causing fast-food restaurants to take another look at pricing as customers are more careful with their money.
News clip discussing Wendy’s location closures.
Watch:
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