Wendy’s is accelerating plans to shut down many of its lower performing restaurants globally while also adding a similar number of recent locations, executives revealed at an profits call Thursday.

The quick food chain will close an additional 140 locations this year, Wendy’s Chief financial Officer Gunther Plosch said on the call. These “outdated” restaurants make far below the structure average with average volume unit of approximately $1.1 million.

However, the business plans to replace these sites with more profitable locations with average unit volumes of $2 million and more.

Around 250 to 300 recent Wendy’s sites were expected to have opened in 2024, Wendy’s spokesperson Heidi Schauer confirmed to USA TODAY.

“After our strategic review, we now expect a similar number of closures as openings, so we expect net unit growth in 2024 to be roughly flat,” Schauer said in a statement.

500 recent Wendy’s locations added in history 2 years

Wendy’s President and CEO Kirk Tanner said on the profits call that these underperforming restaurants will be replaced by recent units in more profitable locations.

“When you ponder about strengthening our structure you look at a brand that’s 55 years ancient and some of those restaurants are just out of date,” Tanner told investors.

He added the business has already launched around 500 locations in the history two years.

How many Wendy’s restaurants are there?

By the complete of its third financial quarter on Sept. 29, Wendy’s had 7,166 locations including 6,010 in the U.S. and 1,156 internationally.

Executives have not confirmed which sites will shut down, but said closures will be spread out geographically both in the U.S. and globally.

Chains seeks growth with Krabby Patty Meal, $1 drink deal

Wendy’s net profits for the third financial quarter ending Sept. 29 was $50.2 million, or 25 cents a distribute, down from last year’s prior period at $58 million, or 28 cents a distribute.

However it’s revenues rose this year at $566.7 million, compared to 2023’s $550.6 million.

Tanner said the chain looks toward growth through its recent locations and offers including its recently launched limited-period Krabby Patty Meal and Pineapple Under the Sea Frosty. Executives also said the business is leaning into its collaboration with Coca-Cola Freestyle through its current $1 promotion beverage deal.

“We were enthusiastic to bring this fan favorite to life through innovation on two of our iconic core menu items and we are executing this promotion in a way that only Wendy’s can deliver,” Tanner said. “We are very pleased that the initial act has exceeded our expectation.”