TGI Fridays Files C.11; Wendy’s Closing 140 Locales

Two high-profile restaurant chains have announced plans to deal with ongoing competitive and market challenges:

• TGI Fridays Inc. (Dallas), owner and operator of 39 domestic restaurants, has filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Texas. The casual-dining chain expects to use the time and legal protections made available through the Chapter 11 process to allow it “to explore strategic alternatives in order to ensure the long-term viability of the brand,” it said in a news release. The action only impacts company owned-and-operated stores; unaffected are the units run 56 franchisees in 41 countries. All the brand’s eateries will remain open during the Chapter 11 process.

• The Wendy’s Co. (Dublin, Ohio), announced will close about 140 underperforming/outdated stores by the end of the year. The company’s executives made that disclosure in the earnings call with analysts about the burger chain’s third-quarter 2024 financial results, report a variety of news sources, including Fast Company. On that call, President and CEO Kirk Tanner described the soon-to-close locations as “outdated” and said that the decision to shutter them was made after the company “conducted a robust review of individual restaurants to ensure they meet our expectations for sales, have the profitability to fuel growth and deliver the Wendy’s brand experience for customers.” In the news release on its preliminary results, the fast-food chain – which operates 7000-plus restaurants – reported total revenues of $566.7 million, a 2.9% increase from a year earlier, while its net income was $50.2 million, a drop of 13.4%.