Wendy's is closing another 140 'outdated' stores as it looks to build out new higher-tech locations

• Wendy's says will close 140 "outdated" stores this year, leaving its growth count flat for 2024.
• The company said Thursday the move will set the chain up for faster expansion in the coming years.
• Wendy's is in the home stretch of a redesign that features new tech and drive-thru improvements.

Wendy's is pulling off the Band-Aid.

The fast-food chain said Thursday that it will close 140 "outdated" stores in underperforming areas this year, ahead of schedule.

Wendy's has 7,000 worldwide locations, and previously said it expected to close around 100 locations this year. The company has opened more than 500 locations in the last two years.

While the additional 140 closures will leave Wendy's growth count flat for 2024, CEO Kirk Tanner said it sets the company up for faster expansion starting next year.

Tanner said annual sales and profit margins at the closing locations are far below the overall company average. CFO Gunther Plosch added that these locations would have been closed over the next three years.

"We have designed this initiative to ensure that, over time, many of these units will be replaced by new restaurants at better locations with significantly improved sales and profitability," Tanner said during Wendy's third-quarter earnings call.

Wendy's is in the home stretch of a redesign it began two years ago that features new tech and drive-thru improvements, with nearly 90% of restaurants completed.

Tanner said the redesign allows employees to work more efficiently, simplifies delivery orders, improves customer satisfaction, and boosts sales and profitability above current system-wide averages.

The company previously said that the new design costs nearly 10% less to build and is cheaper for franchisees to operate, with more efficient lighting, energy usage, and redesigned kitchens.

"The overall strategy and initiative here is to build on an already strong system. This initiative makes us even stronger," Tanner said Thursday.

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