Wendy’s has announced plans to close approximately 140 underperforming restaurants by the end of 2024. This decision was revealed during an earnings call on Thursday.
Kirk Tanner, Wendy’s president and CEO, stated that this initiative is part of a broader strategy to strengthen the company.
He explained that many of the locations being closed are outdated and situated in areas with slow growth. These restaurants typically generate average yearly sales of about $1 million, which is below Wendy’s usual performance.
When asked if specific regions are targeted for closures, Tanner clarified that the affected locations are spread across the United States rather than concentrated in any one area. “Some of those restaurants are quite out of date, and that’s really kind of the punch line on that one,” he said.
While Tanner did not disclose the exact locations that will close, he mentioned that many will be replaced with new Wendy’s restaurants in better locations that promise improved sales and profitability.
Wendy’s Chief Financial Officer Gunther Plosch added that the company aims to increase its number of locations by 3% to 4% in 2025.
He noted that closing underperforming stores can help expedite this growth. “These are closures that would have happened in 2025, 2026, and 2027,” Plosch explained. “It gives us longer-term visibility on accelerated new openings to come.”
Wendy’s is not alone in making such decisions; other restaurant chains have also announced closures due to underperformance. Recently, TGI Friday’s closed about 50 locations and is reportedly considering a Chapter 11 bankruptcy filing. Denny’s also plans to shut down 150 of its lowest-performing restaurants by the end of 2025, which represents about 10% of its total locations.
As Wendy’s moves forward with its closures, it remains focused on enhancing operational efficiency and productivity to boost profits and drive future growth.
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