Wendy's plans to close 140 restaurants and open 250 to 300 new locations

Ohio based fast food restaurant chain Wendy’s has revealed plans to close 140 underperforming restaurants as part of a strategy to strengthen its brand and optimize its operations.

Kirk Tanner, the company’s President and CEO, addressed these developments during Thursday’s earnings call, highlighting that the closures are a calculated move to enhance overall system performance.

Tanner noted that while the fast-food chain has seen significant growth, with over 500 new restaurants opened in the past two years and plans for an additional 250 to 300 openings this year, the decision to close certain locations was necessary. “We are looking at closing a few restaurants that underperform,” he stated. “These locations have average unit volumes of about $1 million and margins below our business average.”

The closures, totaling approximately 140 units, are expected to balance out the company’s growth. The company has not yet revealed which restaurants will be closed.

Tanner emphasized that the closures are strategically aligned with the company’s accelerated growth projections of 3% to 4% in 2025.