Wendy’s is moving quickly to close several of its underperforming locations worldwide while also planning to open new ones.

During an earnings call on Thursday, executives announced that the fast-food chain intends to open a similar number of new restaurants. However, Wendy’s Chief Financial Officer Gunther Plosch mentioned that the company will also shut down 140 underperforming locations this year. These “outdated” outlets are generating significantly lower sales than others in the system, with an average revenue of about $1.1 million.

In contrast, Wendy’s is committed to replacing these closed sites with more lucrative establishments that bring in around $2 million or more in average sales.

The plan includes launching approximately 250 to 300 new Wendy’s locations.

Wendy’s was anticipated to launch new outlets in 2024, as confirmed by spokesperson Heidi Schauer to YSL News.

“Following our strategic assessment, we now foresee a similar count of closures and openings, leading us to expect nearly flat net unit growth for 2024,” Schauer stated.

500 new Wendy’s locations introduced over the last 2 years

Kirk Tanner, President and CEO of Wendy’s, mentioned during the earnings call that these underperforming locations will be replaced with new establishments that have greater profit potential.

“Enhancing our system is essential, especially considering that we have a brand with a 55-year history, and some of the restaurants are quite outdated,” Tanner informed investors.

He mentioned that over the last two years, the company has opened approximately 500 new locations.

How many Wendy’s restaurants exist?

As of the conclusion of its third financial quarter on September 29, Wendy’s operated a total of 7,166 locations.

The company has announced plans to close 6,010 locations in the U.S. and an additional 1,156 internationally.

While executives haven’t specified the exact locations that will be affected, they mentioned that the closures will occur in various regions across the U.S. and worldwide.

Chain aims for expansion with Krabby Patty Meal and $1 beverage offer

Wendy’s reported a net income of $50.2 million for its third fiscal quarter ending on September 29.

The company’s earnings dropped to 26 cents per share, a decrease from last year’s figures of $58 million, or 28 cents per share.

On the other hand, their revenue increased this year to $566.7 million, up from $550.6 million in 2023.

Tanner mentioned that the chain is focused on expanding with new locations and offerings, including the recently introduced limited-time Krabby Patty Meal and Pineapple Under the Sea Frosty. Company executives also noted that they are enhancing their collaboration with Coca-Cola Freestyle through a current promotional beverage deal for just $1.

We were thrilled to bring this beloved menu item to life by innovating two of our classic offerings, and we’ve rolled out this promotion in a uniquely Wendy’s way,” Tanner mentioned. “We’re very happy that the initial results have surpassed our expectations.”