Wendy’s is closing 140 restaurants

New York
CNN
—

Wendy’s is closing 140 restaurants in the coming months, the fast-food chain announced this week. But the company said it would open an equal number of new locations in areas it believes can generate better business for Wendy’s.

The restaurants targeted for closure are “outdated and located in underperforming” areas, Wendy’s CEO Kirk Tanner said on an earnings call Thursday, adding that their financial performance is “well below the system average.”

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

Wendy’s “conducted a robust review of individual restaurants to ensure they meet our sales 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 closings comes in addition to 100 closures that Wendy’s announced in May.

Despite the rounds of closings, the total number of Wendy’s, which stands at about 6,000 in the U.S., is not declining. The chain is building about 250 to 300 new locations, which are based on the technologically-enhanced design unveiled in 2022, which features new pick-up windows, updated kitchen appliances and a fresh interior.

Other chains recently announced closings of underperforming locations, including Denny’s and Shake Shack.

Wendy’s ( WEN ) earnings were mixed, with same-store sales coming in below analysts’ expectations of 0.2%.

The company remained upbeat about this quarter’s performance because its SpongeBob SquarePants-themed meal is “resonating with consumers and generating a powerful response that is driving significant sales growth,” Tanner said.