Fast-food giant Wendy’s is closing 140 underperforming locations through the end of 2024 as it looks to improve its “restaurant footprint and overall system health.”

To combat the closures, however, the Ohio-based company is working to replace many of these units with “new restaurants in better locations with significantly improved sales and profitability,” Wendy’s CEO Kirk Tanner told analysts during the third quarter earnings call.

The company has been thoroughly reviewing individual restaurants to ensure they meet sales expectations and are profitable enough to support growth, and said the location closures are “outdated and in underperforming areas,” with operating margins well below the system average, Tanner said.

“I think when you think about strengthening our system, you’re looking at a brand that’s 55 years old and some of those restaurants are just outdated,” Tanner said.

CHIPOTLE BRINGS BACK BIGGER PORTIONS AFTER CRITICISM FROM CUSTOMERS

This restaurant footprint optimization is part of a series of initiatives Wendy’s is deploying to strengthen the brand and its operations within the company and its franchisees.

The company did not reveal where the closures will take place, but Tanner noted that “it’s not just one specific area.”

An exterior view of a Wendy’s restaurant. (Paul Weaver/SOPA Images/LightRocket via Getty Images/Getty Images)

Wendy’s expects total closures in 2024 “to be offset by new restaurant openings this year, keeping our net unit growth approximately flat compared to the prior year,” Tanner said, adding that the company is confident that it will achieve significantly accelerated growth in the number of units. from 3% to 4% in 2025.

By the end of 2024, the company said it will have opened more than 500 new restaurants in the past two years.

HOW MCDONALD’S PLANS TO BRING BACK CUSTOMERS

An image of a Wendy’s meal. (The Wendy’s Company via PRNewswire/Fox News)

Tanner said it is also “using data-driven insights to target high-growth trade areas” as it continues to open new locations.

Globally, the company says it is on track to reach 250 to 300 job openings throughout the year.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Wendy’s is one of a growing number of chains trying to lure customers back through a slew of promotions.

In the previous quarter, Wendy’s said it “maintained overall visitor and dollar share in the hamburger (quick-service restaurant) category.”

Revenue for the quarter exceeded analyst expectations at $566.7 million, up 2.9% from a year earlier.