Wendy’s has announced plans to shut down 140 of its U.S. locations by the close of this year, in addition to the 100 closures revealed back in May.

During an investor conference call held on Thursday, the company indicated that these closures will be balanced out by new restaurant openings. Wendy’s aims to launch between 250 and 300 new establishments within the same timeframe.

Kirk Tanner, President and CEO of Wendy’s, highlighted that the restaurants that will be closing have not been performing as well as others in the chain.

“These locations simply don’t contribute positively to our brand’s growth,” Tanner stated. “Considering we have a brand that has been around for 55 years, some of these outlets might appear quite outdated.”

Although Wendy’s, which is headquartered in Dublin, Ohio, did not release specific details regarding the locations set to close, Tanner mentioned that the closures are dispersed throughout the country.

“Our main focus is to expand with new restaurants because they consistently outperform the less successful ones,” he emphasized. “We strive to provide our customers with the best dining experiences possible.”

As of the end of the third quarter, Wendy’s operated 7,292 locations, with over 80% situated in the United States.

In midday trading on Friday, Wendy’s stock experienced a rise of 3.5%.

The restaurant industry in the U.S. has faced limited sales growth this year, as many consumers have hesitated due to increasing menu prices. During the first half of the year, Wendy’s same-store sales, which track sales at locations open for at least a year, saw a modest increase of less than 1% in the U.S.

Earlier in October, Denny’s announced its plans to close 150 of its locations by the end of 2025. Additionally, Red Lobster sought bankruptcy protection in May after shuttering numerous eateries.