In a strategic shift to refine its restaurant footprint and boost profitability, fast-food icon Wendy’s is set to close 140 underperforming locations by the end of 2024. This move, the company explains, is a calculated step toward building a leaner, stronger brand that meets the high standards customers have come to expect.
The Ohio-based burger chain isn’t just shutting down stores; it’s already planning to replace many of these locations with modernized restaurants in higher-traffic areas. According to Wendy’s CEO Kirk Tanner, this “restaurant footprint optimization” is about more than closing stores—it’s about laying a foundation for long-term growth and increased profitability. “When you think about strengthening our system, you look at a brand that’s 55 years old, and some of those restaurants are just out of date,” Tanner explained during the company’s third-quarter earnings call.
For Wendy’s, it’s about revitalizing and repositioning its brand in a competitive fast-food landscape. Unlike some companies simply cutting locations to reduce costs, Wendy’s is actively reinvesting in new spots with higher growth potential. “We’re using data-driven insights to target high-growth trade areas,” Tanner added, underlining the company’s commitment to smart growth. Instead of holding onto outdated, low-performing locations, Wendy’s is laser-focused on placing its resources where they’ll have the most impact.
While Wendy’s hasn’t disclosed specific locations for these closures, Tanner was clear that the strategy isn’t confined to any single region. Instead, the closures will be spread across various markets, optimizing their footprint nationwide. Importantly, despite the upcoming closures, Wendy’s anticipates that the company’s net growth will remain flat for 2024. And in 2025, Wendy’s expects to see a 3% to 4% uptick in unit growth, a testament to their aggressive expansion plans and investment in high-potential areas.
In fact, the company has already made significant strides, opening more than 500 new restaurants over the past two years and setting its sights on another 250 to 300 global openings by year’s end. Wendy’s aims to enter 2025 with a robust portfolio of new, high-performing restaurants, equipped to meet rising demand while appealing to a broader base of loyal customers.
Amid these strategic changes, Wendy’s is also working to keep customers coming back. Like other major chains, it has rolled out a variety of promotions to entice diners, reinforcing its strong position in the quick-service burger market. Despite the industry’s challenging landscape, Wendy’s managed to maintain “overall traffic and dollar share” in its segment last quarter, proving that even with fewer locations, the brand remains strong in the minds of American consumers.
The company’s revenue came in above analyst expectations this quarter, hitting $566.7 million—a 2.9% increase over last year. This demonstrates that Wendy’s proactive strategy to optimize and expand is already yielding results, particularly as it outperforms expectations in a crowded market.
By refocusing on areas that maximize profitability and traffic, Wendy’s is sending a clear message: the company is committed to a healthy future that emphasizes quality, modernization, and value for its customers. As Wendy’s navigates this transition, one thing is clear: it’s not simply about maintaining the status quo but about becoming a more resilient, adaptable brand poised to meet modern demands without compromising the classic experience customers love.