Wendy's is closing 140 restaurants

new York
CNN
—

Wendy's will close 140 restaurants in the coming months, the fast-food chain announced this week. But the company said it will open an equal number of new locations in areas it believes could generate better business for Wendy's.

The restaurants slated to close are “outdated and located in underperforming” areas, Wendy's CEO Kirk Tanner said in a conference call Thursday, adding that their financial performance was “significantly below the system average.”

The company did not provide a list of locations it plans to close. Tanner said, “It’s not a specific area.”

Wendy's “conducted a thorough review of individual restaurants to ensure they meet our revenue expectations, have the profitability to drive growth and deliver the Wendy's brand experience to customers,” he said. “Overall, Wendy’s system is incredibly healthy.”

This round of closures is in addition to the 100 closures Wendy's announced in May.

Despite the numerous closures, the total number of Wendy's, which stands at around 6,000 in the United States, is not decreasing. The chain is building about 250 to 300 new locations based on the technologically enhanced design unveiled in 2022 and featuring new pickup windows, updated kitchen appliances and revamped interiors.

Other chains have recently announced closures of underperforming locations, including Denny's and Shake Shack.

Wendy's (WEN) earnings were mixed, with same-store sales falling 0.2%, below analysts' expectations.

The company remained optimistic about its performance this quarter as its SpongeBob SquarePants-themed meal “resonates with consumers and generates a strong response, resulting in significant sales growth,” Tanner said.