(NEXSTAR) — Wendy’s is closing roughly 140 underperforming locations by the end of 2024, the company announced during an earnings call on Thursday.
“This initiative makes us even stronger,” said Wendy’s president and CEO Kirk Tanner, explaining that the closures are part of a broader plan to “strengthen our system.”
Tanner said that many of the affected locations are outdated and in slower-growth areas, with average yearly sales of about $1 million, below Wendy’s typical performance.
When asked during the call whether Wendy’s is targeting certain regions, Tanner emphasized that the U.S. closures are spread out across the country rather than concentrated in one area.
“Some of those restaurants are quite out of date, and that’s really kind of the punch line on that one. It’s not one particular area. It’s across the board,” he said.
While Tanner didn’t specify which locations are closing, he said many of them will be replaced by new Wendy’s restaurants “in better locations with significantly improved sales and profitability.”
Chief Financial Officer Gunther Plosch added that Wendy’s plans to grow its number of locations by 3% to 4% in 2025, and shuttering underperforming stores can help speed up the process.
“These are closures that would have happened in 2025, 2026 and 2027,” Plosch said. “It gives us longer-term visibility on accelerated new openings to come.”
In recent days, other restaurant chains have also announced plans to close underperforming locations or have already begun shuttering stores.
TGI Friday’s abruptly closed about 50 of its restaurants over the past week, according to CNN. The Wall Street Journal reported on Thursday that the casual dining chain is mulling a Chapter 11 bankruptcy filing, citing people familiar with the matter.
On Oct. 22, Denny’s told investors that it would shut down 150 of its lowest-performing restaurants by the end of 2025 to improve its financial standing, per the Associated Press. This represents about a tenth of its total locations.
