Wendy’s to Close 140 Locations as Part of Strategic Restructuring
Wendy’s, the popular fast-food chain, announced plans to close 140 underperforming locations across the U.S. and internationally by the end of 2024. This move, revealed during Wendy’s third-quarter earnings call, targets low-revenue stores in regions with slower growth to optimize the brand’s overall profitability and make room for new, higher-performing locations.
The company did not disclose where the restaurants will close, the company’s strategy aims to strengthen its portfolio and accelerate growth in key markets.
The closures are part of a broader initiative led by CEO Kirk Tanner to boost overall profitability by retiring stores with annual sales of around $1.1 million, less than half of the chain’s average. Many of the affected locations are older, with fewer resources dedicated to upgrades and community integration. Tanner noted that closing these stores “ensures that we deploy resources to locations with better growth potential.”
The restaurant continues to invest in new locations, planning to open up to 300 restaurants globally this year. These new sites, many of which feature updated drive-thru designs and next-generation layouts, reflect Wendy’s “Image Activation” initiative, which seeks to modernize the chain’s presence in high-potential markets.
On Long Island, Wendy’s has seen significant recent investments under the ownership of Delight Restaurant Group. In 2021, Delight acquired 44 Wendy’s locations on the island and announced plans to remodel many of them under Wendy’s Image Activation program while adding new restaurants to the area. Delight, which operates hundreds of Wendy’s and Taco Bell locations nationwide, has expressed enthusiasm for expanding Wendy’s presence on Long Island with a fresh look and renewed focus on the community. Andrew Krumholz, Managing Partner of Delight, remarked at the time, “We are excited to continue and build on the strong performance of the Wendy’s restaurants in the Long Island market.”
The planned closures come at a challenging time for fast-food chains, which face evolving consumer demands and market conditions. Wendy’s has rolled out unique promotions, including its recent “Krabby Patty Kollab Menu,” that align with popular culture to attract new audiences. Despite these efforts, the company’s projections indicate flat growth for the remainder of 2024, though leadership remains optimistic about the years ahead.
CFO Gunther Plosch outlined that the closures allow for better positioning of resources to support stronger-performing stores and planned expansions.
“This move gives us longer-term visibility on accelerated new openings to come,” he said. Wendy’s anticipates an annual unit growth of 3% to 4% by 2025, driven by increased franchisee participation both in the U.S. and abroad.
For now, Long Island’s locations appear to be solidly aligned with the brand’s growth strategy and ongoing upgrades, securing their place in the chain’s long-term plans.
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