Burger King may have to close up to 400 stores by the end of the year with the CEO warning underperforming outlets will be the first to go.
The fast-food burger chain is axing the most stores in its recent history, according to CEO Josh Kobza. as 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 300-400 restaurants, not all of them will shut, according to Mr 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.
Chairman Patrick Doyle said: "There will always be a minority [of franchisees] who aren’t dedicated, enthusiastic operators. We’ll work with them to leave the system and move on to do something else.
"There simply is no room for franchisees who are not willing or able to work hard to operate restaurants that are better than the system average over the long term."
Despite the fast-food chain having better-than-expected sales in the first quarter, the axing of the stores is being made to "improve the overall health of the system."
Mr Kobza said: "If they can't, we have operators ready to step in and do what's required."
"We're feeling increasingly positive about the case path forward this year and into the future."
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 $14million debt.
The stores across Minnesota, Montana and Utah will close - with more on the way, according to reports.
The franchisee admitted it was "possible, if not likely" more stores would face the axe as the company tries to negotiate rent and shop improvements with landlords.
The chain was America's second biggest burger restaurant after McDonald's but lot its spot to Wendy's in 2020.
Top business analysts warned the company was at risk of entering a "death spiral" if they failed to change and keep up with their rivals.
Below is a list of franchise stores set to shut in 2023.
Michigan
2155 Gratiot Ave
9871 Livernois
8201 Woodward Ave
18021 Kelly Rd
20200 Grand River Ave
13600 W. McNichols Rd
15500 W. Seven Mile
20240 Plymouth Rd
12661 Mack Ave
9239 Gratiot Ave
17440 E. Warren
16245 Livernois Ave
3863 W. Jefferson Ave.
10336 W. 8 Mile Rd
3625 South Dort Hwy
3801 Clio Rd
13324 Woodward Ave
28203 Plymouth Rd
34835 Plymouth Ave
31456 Woodward Ave
23660 Telegraph Rd
30711 Southfield Rd
1113 E. West Maple Rd
2411 E. 8 Mile Rd
9774 E. M-36
Minnesota
209 Nokomis Street, Alexandria
926 Central Avenue Northeast, East Grand Forks
528 Western Ave, Fergus Falls
21 Depot Street, Litchfield
205 Lake Street, Long Prairie
586 Southwest 1st Street, Montevideo
516 East Bridge Street, Redwood Falls
100 21st Street North, Moorhead
1611 US-12, Willmar
Montana
1422 West Main Street, Lewistown
520 North 27th St, Billings
1211 9th Street West, Columbia Falls
Kansas
2201 East Kansas Ave, McPherson
Nebraska
3627 South Lincoln Avenue, York
2504 O St, Lincoln
4230 North 27th Street, Lincoln
North Dakota
3765 Gateway Drive, Grand Forks
Utah
171 East Gateway Dr, Heber
7810 South 1300 E, Sandy
10235 South State Street, Sandy
729 North Main St, Clearfield
1466 East 3500 North, Lehi
119 East Crossroads Blvd, Saratoga Springs
147 East Bangerter Highway, Draper
5390 South 1900 West, Roy
1660 West North Temple St, Salt Lake City
Wyoming
1902 Mountain View Drive, Cody
