The fast food chain announced the closing of 140 of its restaurants in the next few months. The company has yet to provide the exact locations targeted to close.
On Thursday, in the latest earnings call, Wendy’s CEO Kirk Tanner said the restaurants closing their doors are “outdated and located in underperforming areas”. Tanner explained that the locations span multiple states: “it’s not one particular area.”
In the latest press release regarding its Q3 earnings, Wendy’s said the company is performing well. However, it has experienced a decrease in net income resulting primarily from a decrease in operating profit and a higher effective tax rate. Kirk Tanner stated: “Wendy’s restaurants continued to deliver sales growth during the third quarter, maintaining overall traffic and dollar share in the QSR burger category.” The CEO said, “We continued to strengthen the relationship with our customers through our digital and loyalty platforms while driving growth for the breakfast and late-night dayparts. We expect to build on this progress into the close of this year with exciting new programming to showcase our craveable core, impactful innovation, and relevant value offerings.”
The CEO assured investors that Wendy’s “conducted a robust review of individual restaurants to ensure they meet our expectations for sales, have the profitability to fuel growth, and deliver the Wendy’s brand experience for customers,” he said. “Overall, Wendy’s system is incredibly healthy.” Despite the upcoming closures, the chain aims to add between 250 to 300 new locations, which will be of the latest high-tech design the company revealed in 2022 – including modernized pick-up windows, updated interior, kitchens and appliances.
Wendy’s announcement comes as a string of other restaurant chains also listed upcoming closures of underperforming locations, including Shake Shack and Denny’s.
Wendy’s and its franchisees currently employ hundreds of thousands of people across approximately 7,000 restaurants.
By CEO NA Editorial Staff
