Wendy’s is set to close approximately 140 underperforming restaurants by the end of 2024, CEO Kirk Tanner revealed on a third-quarter earnings call.
The purpose of Wendy’s closures is to enhance its “restaurant footprint and overall system health,” Tanner said, according to a transcript from The Motley Fool. Many closing locations will be replaced with “new restaurants at better locations with significantly improved sales and profitability,” he continued.
Wendy’s will be closing around 140 locations by the end of 2024.https://t.co/tf6ZeabEVl
— KTLA (@KTLA) November 1, 2024
“I think when you think about strengthening our system, you look at a brand that’s 55 years old and some of those restaurants are … just out of date,” the Wendy’s CEO said regarding his decision, according to the transcript.
Wendy’s “conducted a robust review of individual restaurants to ensure” the locations reach anticipated sales, were capable of profit growth and provided “the Wendy’s brand experience for customers,” Tanner said on the call. He assured that all closing Wendy’s locations are “outdated and in underperforming areas.”
Wendy’s did not announce where its closing restaurant are located, but the company’s CEO noted “its not one particular area,” according to the transcript. (RELATED: Iconic Snack Brand Changes Name To Seem ‘More Adult’)
Wendy’s 2024 closures will not surpass how many new locations it has opened, Tanner told the others on the call. He said fast-food giant will have opened over 500 new restaurants in the past two years.
Wendy’s said it had sustained “overall traffic and dollar share in the [quick service restaurant] burger category” in the previous quarter, according to Fox Business. The restaurant chain surpassed analysts’ expectations for the quarter at $566.7 million, a 2.9% boost from last year.