Wendy’s is closing 140 restaurants
By Jordan Valinsky, CNN
New York (CNN) — Wendy’s is closing 140 restaurants in the coming months, the fast food chain announced this week. But the company said it would open an equal number of new locations in areas it believes can generate better business for Wendy’s.
The restaurants targeted to close are “outdated and located in underperforming” areas, Wendy’s CEO Kirk Tanner said on an earnings call Thursday, adding that their financial performance are “well below the system average.”
The company didn’t provide a list of locations slated to close. Tanner said that “it’s not one particular area.”
Wendy’s “conducted a robust review of individual restaurants to ensure they meet our expectations for sales, have the profitability to fuel growth, and deliver the Wendy’s brand experience for customers,” he said. “Overall, Wendy’s system is incredibly healthy.”
This round of closures are in addition to 100 closings that Wendy’s announced in May.
Despite the rounds of closures, the overall number of Wendy’s, which stands at about 6,000 in the US, isn’t shrinking. The chain is building about 250 to 300 new locations, which are based of the technologically enhanced design revealed in 2022 that have new pick-up windows, updated kitchen appliances and a spruced up interior.
Other chains recently announced closures of underperforming locations, including Denny’s and Shake Shack.
Wendy’s (WEN) earnings was mixed, with same-store sales coming in below analysts’ expectations at 0.2%.
The company remained upbeat about this quarter’s performance because its SpongeBob SquarePants-themed meal is “resonating with consumers, generating a powerful response that is driving significant sales growth,” Tanner said.
The-CNN-Wire
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