The world-famous fast-food giant Wendy's is closing 140 of its locations.

Wendy's executives announced that they are accelerating plans to close many underperforming restaurants worldwide while simultaneously opening a similar number of new locations. Wendy's Chief Financial Officer Gunther Plosch stated regarding the matter, "These 'outdated' restaurants are earning well below the system average with an average volume unit of about $1.1 million."

140 LOCATIONS TO CLOSE IN 2 MONTHS

Wendy's will close 140 underperforming stores by the end of 2024 to improve its "carbon footprint and overall system health." Wendy's CEO Kirk Tanner noted that he expects the total closures in 2024 to be "offset by new restaurant openings this year, and our net unit growth will remain approximately the same as the previous year," adding that he is confident the company will achieve a significant accelerated unit growth rate of between 3% and 4% in 2025.

“TO BE REPLACED WITH NEW UNITS IN MORE PROFITABLE LOCATIONS”

Wendy's spokesperson Heidi Schauer stated, "After our strategic review, we now expect closures to match openings, so we anticipate net unit growth to be roughly at the same level in 2024." Wendy's President and CEO Kirk Tanner mentioned in the earnings call that these underperforming restaurants will be replaced with new units in more profitable locations.

500 LOCATIONS OPENED IN THE LAST 2 YEARS

Tanner told investors, "When you think about strengthening our system, you are looking at a 55-year-old brand, and some of these restaurants are now outdated." He also added that the company has opened nearly 500 locations in the last two years.

TOTAL OF 7166 STORES

As of September 29, Wendy's has a total of 7,166 stores, with 6,010 in the U.S. and 1,156 internationally. Wendy's, which previously had branches in Turkey, withdrew from the country in the early 2000s.