Wendy’s Plans to Shut Down 140 Restaurants by End of 2024

Wendy’s is set to close approximately 140 underperforming restaurants by the end of 2024, a move announced during the company’s recent earnings call on Thursday. President and CEO Kirk Tanner stated that this initiative is part of a larger strategy to “strengthen our system.”

Many of the targeted locations are outdated and situated in slower-growth areas, generating average annual sales of about $1 million—significantly below Wendy’s usual performance standards. Tanner noted that the closures will be dispersed across the U.S., rather than concentrated in specific regions.

“Some of those restaurants are quite out of date, and that’s really kind of the punch line on that one,” Tanner explained. “It’s not one particular area. It’s across the board.”

Although specific locations were not disclosed, Tanner mentioned that many of these closures will be followed by the opening of new Wendy’s outlets in more promising locations that are expected to yield improved sales and profitability.

Chief Financial Officer Gunther Plosch highlighted that closing these underperforming stores will facilitate a planned growth of 3% to 4% in the number of Wendy’s locations by 2025. “These are closures that would have happened in 2025, 2026, and 2027,” Plosch said. “It gives us longer-term visibility on accelerated new openings to come.”

Wendy’s is not alone in this trend; other restaurant chains are also announcing closures of underperforming locations. TGI Friday’s recently shut down about 50 restaurants, and Denny’s has revealed plans to close 150 of its lowest-performing locations by the end of 2025, representing roughly 10% of its total establishments.

Source