Cook said the closures will primarily affect restaurants that have “consistently underperformed” and are weighing down the chain’s broader performance. The process is expected to begin later this year and continue through 2026.

“These actions will strengthen the system and enable franchisees to invest more capital and resources in their remaining restaurants,” Cook told analysts. “Closures of underperforming units are expected to boost sales and profitability at nearby locations.”

No official list of affected branches has been disclosed, but the company said it would work closely with franchise owners to manage the transition.

A Difficult Period for the Fast-Food Chain

This move follows a series of earlier closures, including about 140 Wendy’s locations that were shuttered last year for similar reasons. The new wave of closures underscores the company’s broader effort to streamline operations and improve financial performance amid growing competition in the U.S. fast-food industry.

Wendy’s recently reported a 4.7% decline in same-store sales across the United States during the most recent quarter, contrasting sharply with gains reported by rivals McDonald’s, Burger King, and Shake Shack. Analysts say Wendy’s has struggled to maintain market share as consumers increasingly favor promotional deals, limited-time offers, and aggressive marketing campaigns by competitors.

“Wendy’s needs to redefine its value proposition,” said one industry analyst cited by Reuters. “The market has become extremely competitive, and brand loyalty is increasingly driven by price and product innovation.”

Focusing on Franchise Investment and Efficiency

Cook emphasized that the closures are intended to refocus Wendy’s operational strategy and ensure that franchise owners can reinvest in stronger-performing outlets. The company believes concentrating investment in high-traffic areas will yield better returns while modernizing restaurants to align with consumer expectations for digital ordering and delivery.

The restructuring plan also aims to reduce inefficiencies in supply chain and labor costs, which have risen sharply in recent years. Industry observers say the move reflects a broader trend among fast-food chains prioritizing operational efficiency and profitability over rapid expansion.

Product Innovation Offering Signs of Optimism

Despite current challenges, Wendy’s sees positive momentum from recent product launches. Cook highlighted the success of its new chicken tenders—branded as “Tendys”—which exceeded sales expectations and sold out in several markets before formal advertising began.

“We’re looking forward to continuing that momentum,” Cook said. “This is an encouraging first step as we look to reestablish our leadership position in chicken.”

The company has been expanding its menu in an effort to attract younger consumers and adapt to shifting dietary trends, including higher protein options and customizable meal choices.

Industry-Wide Pressures and Competitive Landscape

The fast-food sector has faced heightened economic pressure over the past year as inflation and rising labor costs erode profit margins. According to data from the National Restaurant Association, average menu prices across major chains have risen nearly 6% year-over-year, leading some consumers to trade down or dine out less frequently.

Competitors such as McDonald’s and Burger King have leveraged larger marketing budgets and extensive digital loyalty programs to sustain customer traffic. McDonald’s, for example, reported a 3.5% increase in U.S. same-store sales in the last quarter, attributing the growth to its value deals and app-based promotions.

Wendy’s leadership believes that a more disciplined approach—focusing on store quality, digital integration, and core menu innovation—will help stabilize its market position and restore profitability by 2026.

Outlook for Wendy’s and Its Franchise Network

While the closures mark a significant contraction, analysts note that Wendy’s long-term prospects remain viable if it successfully consolidates its brand presence and capitalizes on emerging consumer trends. The company’s strong franchise base and international growth potential could offset domestic declines in the medium term.

Wendy’s currently operates over 7,000 restaurants globally, with roughly 6,000 in the United States and the remainder across Canada, Europe, Asia, and Latin America. Expansion in international markets, particularly in Asia-Pacific, continues to be a key growth area for the chain.

Cook concluded that the turnaround plan is designed not only to improve short-term financial metrics but also to ensure sustainable growth. “We are taking deliberate, disciplined steps to position Wendy’s for long-term success,” he said.

Source: CNN – Wendy’s is closing hundreds of restaurants

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Yes, that Snack Wrap — the handheld combo of crispy chicken, shredded lettuce, cheese, and creamy sauce wrapped in a tortilla — is officially making a comeback. It’s been off U.S. menus since 2016, but it never left fans’ hearts (or international menus, for that matter).

So why now? Let’s unwrap what’s behind the long-awaited return.

The Power of the People (and Social Media)

Even years after their removal, Snack Wraps never really disappeared — at least not in spirit. Fans like Alicia Force from Missouri started Facebook groups and even tried DIY versions at home. TikTok creators kept the wrap’s memory alive, including one viral video from Ireland where the wraps never left shelves. A Change.org petition demanding their return racked up nearly 19,000 signatures.

Turns out, McDonald’s was listening.

“The Snack Wrap’s return is a testament to our fans,” said McDonald’s U.S. President Joe Erlinger.

Snack Wraps, But Make Them Simpler

Bringing the wrap back wasn’t as easy as dusting off an old recipe. In fact, one reason the original Snack Wrap disappeared was because it was just too complicated to prepare in fast-paced kitchens.

This time around, McDonald’s focused on streamlining. First, they developed a better fried chicken strip — now known as McCrispy Strips, launched in May. Then came new tools, simplified prep, and nationwide training for crew members across 13,500 U.S. locations.

Still, some fan-favorite features didn’t make the cut. For now, the wraps will only come in fried chicken form and just two flavors: Ranch and Spicy. No grilled chicken. No honey mustard. And no word yet on whether those options might return.

A Strategic Move in a Sluggish Fast-Food Market

The Snack Wrap’s comeback is more than a nostalgic play — it’s a business decision. Fast-food traffic has dipped in 2024, and McDonald’s same-store sales were down 3.6% in Q1 compared to last year. Why? Inflation. The average fast-food bill is up 41% from 2019, according to market research firm Circana.

For cost-conscious customers, a smaller, more affordable item like the Snack Wrap could be a welcome option — especially as more diners lean toward snack-sized meals over traditional breakfast-lunch-dinner routines.

Burger King currently sells a similar wrap for $2.99, which could hint at McDonald’s pricing strategy (though the company hasn’t revealed exact U.S. prices yet).

Chicken Is King in 2024

McDonald’s also has its sights set on chicken — a category that’s growing faster than beef, both in the U.S. and globally.

“There’s so much opportunity in the chicken category,” Erlinger said.

And the competition is heating up. Popeyes launched its own chicken wrap this week. Burger King and Wendy’s already have theirs. Even Wawa is in the game.

With fast-food rivals leaning into handheld chicken, McDonald’s knows it can’t afford to sit out.

What’s Missing — and What Fans Hope Comes Next

While many are celebrating the return, not everyone’s wrap dreams are fulfilled just yet.

• Alicia Force wants her honey mustard flavor back.
• Steve Davis, a Florida mental health counselor, used to stock his fridge with grilled chicken Snack Wraps — but grilled isn’t on the menu this time.
• And some global fans may raise an eyebrow at the limited U.S. relaunch — Canada, for example, never dropped the Snack Wrap and still offers versions with grilled chicken, fish, and even breakfast options.

McDonald’s says it’s keeping the door open:

“We’ll continue listening to our fans when it comes to menu innovations.”

The Bottom Line

After years of fan lobbying, McDonald’s is finally reviving the Snack Wrap — not just as a crowd-pleaser, but as a strategic move to attract budget-conscious and health-minded customers in a competitive fast-food landscape.

So mark your calendars for July 10. If the new version lives up to the hype, the Snack Wrap might just reclaim its title as McDonald’s most missed (and most munchable) menu item.

As Force put it:

“Hopefully they come back and taste the same — and don’t break my heart again, quite frankly.”

Source: AP News – Snack Wrap unwrapped: Here’s why McDonald’s is bringing back a fan favorite on July 10

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Starting today, McDonald’s is introducing its biggest menu shakeup in years with the nationwide launch of the new McValue menu. This budget-friendly option is designed to attract cost-conscious customers who have been put off by rising prices at the fast-food giant.

What’s New on the McValue Menu?

The highlight of the new menu is the popular $5 meal deal, which has already proven successful earlier this year. Alongside this, McDonald’s is introducing a “Buy One, Add One for $1” deal, which also includes breakfast items. In addition, the McValue menu will feature app-exclusive offers and local food and drink deals curated by McDonald’s franchisees.

A New Marketing Campaign with John Cena

To further promote the McValue menu, McDonald’s has teamed up with John Cena, the WWE wrestler-turned-actor and a self-proclaimed “lifelong fan” of the chain. Cena will headline a new marketing campaign aimed at attracting customers and spreading the word about these new budget-friendly options.

Why McDonald’s is Focused on Value

In recent months, McDonald’s has faced challenges, including a significant drop in sales and customer traffic. The company attributes this slump to a 40% price increase since 2019, a result of rising costs. The new McValue menu comes after a difficult period for McDonald’s, including an E. coli outbreak that impacted sales. In response, McDonald’s announced it would invest $100 million into marketing and support for the most affected franchises.

Exclusive Offers to Boost McValue Awareness

To get the word out, McDonald’s is giving away $3 million in promotional offers from 16 different brands, including free YouTube TV subscriptions and free access to paid tiers on Tinder. Customers can unlock these deals by interacting with McValue ads on various apps and websites.

Focus on Budget-Conscious Consumers

As inflation continues to affect many families’ budgets, McDonald’s is doubling down on value. According to David Henkes, a senior principal at Technomic, a food industry consulting firm, McDonald’s is positioning itself as a value-oriented brand to cater to budget-conscious customers, especially as restaurant traffic remains challenged.

McValue: McDonald’s Biggest Value Push Since 2018

The McValue menu marks McDonald’s most significant value-driven effort since 2018, when the brand launched items priced between $1 to $3. However, the $1 menu proved less successful than the $5 meal deals McDonald’s introduced last summer. As inflation pushed prices up, the dollar menu became less effective, and the McValue menu is here to replace the more limited options that remained.

A Key Move for McDonald’s Future

The McValue menu rollout is a major part of McDonald’s strategy to bounce back and regain growth in a tough market. As consumers continue to feel the pinch of rising prices, McDonald’s is betting that a focus on affordable meals will win over cost-conscious customers looking for both value and quality.

McDonald’s next quarterly earnings will be released on February 3, offering a closer look at how these efforts are affecting the brand’s performance in a challenging economy.

Source

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This move follows a broader trend among major corporations, with companies like Walmart, John Deere, and Harley-Davidson also rolling back diversity, equity, and inclusion (DEI) programs in response to the ruling and growing conservative opposition to DEI policies.

Changes to McDonald’s Diversity Efforts

In a statement, McDonald’s revealed that it would retire its diversity goals for senior leadership positions. The company also intends to discontinue its supplier diversity training program and suspend its participation in certain “external surveys” related to diversity and inclusion, although specifics were not provided. Companies like Lowe’s and Ford Motor Co. have similarly halted their involvement in the annual survey by the Human Rights Campaign, which tracks workplace inclusion for LGBTQ+ employees.

The fast-food chain originally ramped up its diversity initiatives in 2021, following a series of sexual harassment lawsuits and a discrimination case involving Black former franchise owners. In a LinkedIn post at the time, McDonald’s CEO Chris Kempczinski emphasized the company’s commitment to diversity, inclusion, and empathy, calling them “core values.”

Shifting Legal and Political Climate

McDonald’s cited the “shifting legal landscape” as a key reason for reevaluating its diversity goals. The Supreme Court’s decision and the actions of other corporations prompted McDonald’s to reassess its diversity efforts. Additionally, the political environment under President Donald Trump, who is a vocal opponent of DEI programs, and legislative actions such as a bill introduced by Vice President-elect JD Vance to eliminate federal DEI programs, may have influenced the company’s decision.

Robby Starbuck, a conservative commentator and advocate against corporate DEI policies, publicly criticized McDonald’s diversity efforts, suggesting he would target the company for its “woke policies.”

Commitment to Inclusion Despite Changes

Despite these changes, McDonald’s emphasized that it remains committed to inclusion and believes that a diverse workforce offers a competitive advantage. The company announced that 30% of its U.S. leaders are from underrepresented groups, an increase from 29% in 2021. However, McDonald’s has revised its goal of reaching 35% diversity among its U.S. leadership by the end of this year.

The company also highlighted its achievements, including reaching gender pay equity at all levels of the organization and meeting its goal of directing 25% of total supplier spending to diverse-owned businesses three years ahead of schedule.

Going forward, McDonald’s diversity team will be rebranded as the “Global Inclusion Team,” but the company will continue to monitor and report its demographic data.

While McDonald’s did not receive comment from several of its internal organizations, such as the Hispanic Owner-Operators Association and the National Black McDonald’s Operators Association, the company’s leadership stated that they remain steadfast in their belief in the value of diversity and inclusion.

Source

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