Wendy’s is set to close 140 underperforming locations by the end of the year, the company announced.
Wendy’s CEO Kirk Tanner said in a third quarter earnings call that the decision for the closures came after a review of individual restaurants.
“We 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,” Tanner said.
As a result, the fast food chain is shutting down stores that are “outdated and located in underperforming trade areas,” Tanner said.
He did not identify specific locations set to close.
But the CEO said over time the goal is to replace the closed down locations with new restaurants in better locations that will provide better sales and profitability.
“We anticipate the total closures in 2024, including additional closures in the fourth quarter, will be offset by new restaurants opening this year, leaving our net unit growth approximately flat compared to the prior year,” Tanner said.
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Wendy’s opened 64 new restaurants globally in the third quarter, and is on pace for its goal of 250 to 300 global restaurant openings for 2024.
“Overall, the Wendy’s system is extremely healthy,” Tanner said.
The newly announced closures come in addition to 100 closings Wendy's announced in May, according to CNN.
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