The Wendy’s Company (NASDAQ: WEN) has become the latest restaurant chain to close locations, with 140 eateries set to be shuttered in the fourth quarter.
The closures were announced Thursday during the company’s earnings call. According to a report in Restaurant Dive, Wendy’s President and CEO Kirk Tanner stated the closures will target “outdated” restaurants in underperforming areas where the average unit volumes are around $1.1 million and the operating margins are lower than the system average. During the first nine months of this year, Wendy’s shut down 111 units, including 78 franchised locations and six company-owned restaurants.
However, the company also expects to open between 250 and 300 locations this year. Wendy’s ended the third quarter with 7,292 units globally, up from 7,166 one year earlier.
“Overall, Wendy’s system is incredibly healthy,” said Tanner, adding that by the end of this year “we will have opened more than 500 new restaurants over the last two years and have the confidence to deliver elevated growth in 2025 and years to come.”
Photo courtesy of Wendy’s
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