Amid slumping sales, Wendy’s leaders told investors that franchisees will no longer be required to serve breakfast.
The announcement comes as the Columbus, Ohio-based fast-food chain rejected a bid to buy the company. Company leaders said some locations could improve profitability by dropping breakfast.
“This option directly supports stronger restaurant economics, improves the employee experience, and importantly, allows operators to concentrate on the food offerings and dayparts that have always been at the heart of Wendy's,” Wendy’s CEO Bob Wright said.
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Many Wendy’s locations have struggled to draw customers during breakfast hours. The chain began offering breakfast nationwide in 2020.
Earlier this year, Wendy’s said it had no plans to exit the breakfast market but would give locations flexibility to open later.
“Mandating that franchisees operate during a day part where they lose money is going to do nothing but hurt their business,” Wright said. “We did study the number of restaurants that had exited breakfast, and we learned some key things about what was going on when franchisees were given the opportunity to step away from an unprofitable breakfast day part.”
The announcement came the same day Wendy’s said it turned down a $1.4 billion offer to buy the company. Wendy’s board said it adopted a poison pill to prevent a takeover.
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Wendy’s board chair Art Winkleblack expressed confidence that Wright could turn the company around.
Earlier this year, Wendy’s announced it would close up to 300 of its 6,000 locations.
