New York
CNN
—

Wendy’s will close 140 restaurants in the coming months, the fast food chain announced this week. But the company said it would open an equal number of new locations in areas it believes can deliver better sales for Wendy’s.

The restaurants ordered to close are “outdated and located in underperforming” areas, Wendy’s CEO Kirk Tanner said on an earnings call Thursday, adding that their financial performance is “well below system average.”

The company did not provide a list of locations that are slated to close. Tanner said that “it’s not about one particular area.”

Wendy’s “has conducted a thorough assessment of individual restaurants to ensure they meet our revenue expectations, have the profitability to drive growth and deliver the Wendy’s brand experience to customers,” he said. “Overall, Wendy’s system is incredibly healthy.”

This round of closures is in addition to the 100 closures Wendy’s announced in May.

Despite the rounds of closures, the total number of Wendy’s, which is approximately 6,000 in the US, is not decreasing. The chain is building approximately 250 to 300 new locations based on the technologically enhanced design unveiled in 2022, featuring new pickup windows, updated kitchen appliances and a refurbished interior.

Other chains have recently announced the closure of underperforming locations, including Denny’s and Shake Shack.

Wendy’s (WEN) earnings were mixed, with same-store sales falling 0.2% below analyst expectations.

The company remained optimistic about this quarter’s performance as the SpongeBob SquarePants-themed meal “resonates with consumers and generates a strong response that drives significant sales growth,” Tanner said.