Wendy’s announced this week that it will be closing 140 of its underperforming restaurants, primarily targeting older locations that generate lower sales.
This decision follows a strategic review aimed at improving profitability and ensuring that each location meets the company’s financial and brand standards, CEO Kirk Tanner said on a third-quarter earnings call.
The closures will be balanced by the opening of 250 to 300 new Wendy’s locations throughout 2024, focusing on sites that better align with the company’s growth strategy. The new restaurants are expected to feature modernized designs, enhanced kitchen technology, and improved customer experience. Executives expect that this simultaneous expansion and closure approach will result in flat net growth for the company’s total number of locations in the US and abroad.
These closures come in addition to 100 Wendy’s locations that were shuttered earlier this year as part of a larger industry trend. Other major brands, including Denny’s and Shake Shack, have recently closed some sites to boost profitability and focus on high-performing areas.
With input from CNN, USA Today, and the Street.
