Wendy’s to Close 140 Underperforming Restaurants, Plans New Openings in Stronger Markets
Wendy’s has announced plans to close 140 restaurants over the coming months, aiming to replace these locations with new outlets in areas projected to yield stronger business results. CEO Kirk Tanner explained during a recent earnings call that the closures target “outdated and underperforming” locations with financial performance falling “well below the system average.” While a list of specific sites for closure has not been disclosed, Tanner emphasized that they are spread across multiple regions.
The closures follow an earlier round of 100 shutdowns announced in May. Despite these reductions, the company’s U.S. footprint, totaling approximately 6,000 restaurants, will remain stable as Wendy’s expands with 250 to 300 new outlets. These new locations will feature the brand’s latest design upgrades introduced in 2022, including advanced pick-up windows, modernized kitchen equipment, and refreshed interior décor aimed at enhancing customer experience.
Wendy’s is not alone in these strategic cuts, with other chains such as Denny’s and Shake Shack also closing underperforming outlets. Despite softer-than-expected earnings and same-store sales growth of 0.2%, Wendy’s remains optimistic, noting that its SpongeBob SquarePants-themed meal has struck a chord with consumers and is generating significant sales momentum for the quarter.
