Wendy’s to Close 140 Outdated Restaurants Across the U.S. by 2024
Wendy’s is set to close approximately 140 underperforming locations by the end of 2024, as part of a broader strategy to strengthen its operations, the company announced during an earnings call on Thursday.
President and CEO Kirk Tanner explained that these closures are aimed at improving Wendy’s overall business, with many of the affected restaurants being outdated and located in slower-growth areas. These locations have average annual sales of about $1 million, which falls below Wendy’s typical performance.
Tanner clarified that the closures will be spread across the United States, rather than concentrated in specific regions. He emphasized that many of the restaurants are simply too old and not up to the company’s standards. “It’s not one particular area. It’s across the board,” Tanner noted.
While Wendy’s did not reveal the specific locations that will be closing, Tanner assured that many of them will be replaced by new Wendy’s restaurants in better locations, which are expected to have higher sales and profitability.
Chief Financial Officer Gunther Plosch added that Wendy’s plans to increase its number of locations by 3% to 4% in 2025. Closing underperforming stores will help accelerate this growth. “These are closures that would have happened in 2025, 2026, and 2027. It gives us longer-term visibility on accelerated new openings to come,” Plosch explained.
This announcement comes amid a broader trend in the restaurant industry, with other chains also closing underperforming locations. TGI Friday’s recently closed about 50 restaurants and is reportedly considering a Chapter 11 bankruptcy filing. Additionally, Denny’s announced plans to close 150 of its lowest-performing locations by the end of 2025, representing around 10% of its total footprint.
