Sat Nov 02 06:30:00 UTC 2024: ## Wendy’s to Close 140 Restaurants This Year
**Dublin, Ohio** – Wendy’s Co. announced plans to accelerate restaurant closures, shutting down an additional 140 locations this year, according to executives. These closures are part of a strategic initiative to replace outdated restaurants in underperforming areas with new locations boasting higher sales and profitability.
The fast-food chain, which reported a third-quarter net income of $50.2 million, revealed that the affected restaurants are generating average unit volumes (AUV) of approximately $1.1 million, significantly below the system average. Wendy’s CEO and president, Kirk Tanner, stated that the closures are aimed at replacing these units with new restaurants in better locations that are projected to achieve AUVs of $2 million or more.
“We have designed this initiative to ensure that many of these units will be replaced by new restaurants at better locations with significantly improved sales and profitability,” Tanner said.
The company emphasized that the closures are spread across various locations and are expected to be offset by new restaurant openings, resulting in roughly flat net unit growth compared to the previous year. Despite the closures, Wendy’s reported positive same-store sales growth of 2.8% globally in the third quarter, with increases of 2.2% in the United States and 7.8% internationally.
As of September 29th, Wendy’s operated a total of 7,166 restaurants worldwide, with 6,010 in the United States and 1,156 internationally. The company also shared plans for upcoming promotional campaigns, including a continuation of its partnership with Coca-Cola Freestyle for a $1 beverage promotion and a Salted Caramel Frosty and premium mushroom burger promotion in the fourth quarter.
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