Burger King may have to close up to 400 stores by the end of the year, with CEO Josh Kobza warning underperforming outlets will be the first to go. Liam Buckler reported for the UK’s Mirror.
Photo Insert: According to its earnings release, the iconic chain has already shut 124 locations in the year up to March across the US.
Kobza admitted the fast-food burger chain is axing the most stores in its recent history, adding that the company usually only closes a couple of hundred stores annually.
According to its earnings release, the iconic chain has already shut 124 locations in the year up to March across the US.
Although there are plans to shut between 300 and 400 restaurants, not all of them will shut, according to Kobza, who admitted there is "a fair degree of uncertainty" around the plans but admits the proposed closures are a “historic high.”
He admitted sales figures have fluctuated between different Burger King stores across the US but the company is seeking to find additional franchisees this year.
The announcement comes after two Burger King franchisees declared bankruptcy earlier in the year. Meridian Restaurants Unlimited and TOMS King Holdings declared bankruptcy due to a reported decline in sales and customers.
Meridian Restaurants will shut 27 locations across seven states after racking up a reported $14 million debt. The stores across Minnesota, Montana, and Utah will close - with more on the way, according to reports.