Wendy’s closing 140 more restaurants as part of push to update its locations

Wendy’s plans to shut 140 U.S. eating places earlier than the top of this 12 months on prime of the 100 it mentioned it could shut in Could.

However in a convention name with buyers Thursday, the corporate mentioned these closures might be offset by new restaurant openings. Wendy’s mentioned it plans to open between 250 and 300 eating places this 12 months.

Wendy’s President and CEO Kirk Tanner mentioned the eating places which are closing are underperforming in comparison with others.

“They’re simply in areas that don’t construct our manufacturers,” Tanner mentioned. “You have a look at a model that’s 55 years outdated and a few of these eating places are fairly old-fashioned.”

Dublin, Ohio-based Wendy’s didn’t present an inventory of the areas to be closed. However Tanner mentioned they’re unfold out everywhere in the nation.

“Our focus is on constructing new eating places as a result of we all know they ship nicely over the typical of those poor-performing eating places,” he mentioned. “We, general, need one of the best eating places for the purchasers and that buyer expertise we need to ship.”

Wendy’s had 7,292 eating places on the finish of the third quarter. Greater than 80% of them are within the U.S.

Wendy’s shares rose 3.5% in noon buying and selling Friday.

U.S. restaurant gross sales have seen little progress this 12 months as many shoppers pushed again in opposition to rising menu costs. Wendy’s same-store gross sales – or gross sales at areas open at the least a 12 months – had been up lower than 1% within the U.S. within the first half of this 12 months.

Earlier in October, Denny’s introduced it would shut 150 areas by the top of 2025. And Crimson Lobster filed for chapter safety in Could after closing dozens of shops.