Wendy's Is Closing Over 100 Restaurants. Is The Chain In Trouble?

Loyal Wendy's fans are on high alert — the chain is closing 140 restaurants before the year is out. The chain hasn't announced the exact locations of the stores, so customers are still on the edge of their seats, wondering whether or not the closures will affect their go-to haunts. The decision comes after a review of the sales and earnings potential of each of the company's stores. The stores that are set to close have been showing low sales performance and were cited as being "outdated," according to Wendy's CEO Kirk Tanner.

Tanner also emphasized in a company earnings call that if these closers hadn't been set to happen in 2024, they would have likely occurred in the coming years regardless, saying, "These are closures that would have happened in '25, '26 and '27. So, it gives us a longer-term visibility on accelerated net openings to come," adding the focus of the burger chain's goals, "[Wendy's is] doubling down on operational excellence, ensuring customers receive the same excellent experience across every Wendy's restaurant."

Although disappointing for those who frequent these particular stores, these closures don't necessarily mean bad news for the business. For one thing, the company has stated that it will open between 250 and 300 new stores in the coming year, all of which will be placed in better locations than their underperforming stores.

What's more, Wendy's is a company that's led to revolutionary changes in fast food culture, and just because it's closing a few stores doesn't mean it'll be falling behind the crowd. The earnings call also shared plans for new menu items. If you loved its Triple Berry Frosty that was released in June, you'll want to get in line to try the Salted Caramel Frosty it's planning to drop. It intends to bring back the fan-favorite Mushroom Bacon Cheeseburger and will continue to build off its current menu, like the collaboration with Spongebob to feature a Krabby Patty. Although store closings often signify a doomed business, that's not always the case, and Wendy's is the perfect example.