A popular fast-food chain is now closing 140 restaurants before the end of the year; however, the company says the closures will be offset by new openings.
Wendy’s has announced plans to close a total of 140 restaurants in the U.S. by the end of this year, adding to the 100 closures it previously revealed in May.
However, during a conference call with investors on Thursday, the company indicated that these closures will be balanced by new openings, with plans to establish between 250 and 300 new locations this year.
Kirk Tanner, Wendy’s President and CEO, explained that the restaurants being closed are underperforming compared to others in the chain.
“They are situated in locations that do not strengthen our brand,” Tanner noted, emphasizing that some of these locations are quite outdated given the brand’s 55-year history.
While Wendy’s did not disclose specific restaurant locations slated for closure, Tanner mentioned that they are dispersed across the country.
He emphasized the company’s commitment to opening new restaurants, which he believes will perform significantly better than the poorly performing ones.
“We want to ensure the best possible customer experience,” he said.
As of the end of the third quarter, Wendy’s operated 7,292 restaurants, with over 80% located in the U.S. Following the announcement, Wendy’s shares rose by 3.5% during midday trading on Friday.
U.S. restaurant sales have experienced minimal growth this year, as many consumers resist rising menu prices.
Wendy’s same-store sales, which reflect sales at locations open for at least a year, increased by less than 1% in the U.S. during the first half of the year.
In related news, Denny’s recently announced plans to close a total of 150 locations by the end of 2025, and Red Lobster filed for bankruptcy protection in May after shutting down several stores.
Follow Store Closure News and Bankruptcy News for more updates like this.
Also Read: TGI Fridays Has Now Filed For Bankruptcy Protection
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