Wendy’s is closing 140 restaurants in the coming months, CNN reported. However, the company said it would open an equal number of new locations in areas it believes can generate better business for Wendy’s.

The restaurants targeted to close are “outdated and located in underperforming” areas, Wendy’s CEO Kirk Tanner said on an earnings call Thursday, adding that their financial performances are “well below the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

This round of closures is in addition to 100 closings that Wendy’s announced in May, according to CNN.

On the earnings call, the company remained upbeat about this quarter’s performance. Its SpongeBob SquarePants-themed meal is “resonating with consumers, generating a powerful response that is driving significant sales growth,” Tanner said.

Fellow QSRs Burger King and KFC missed market estimates for quarterly results on Tuesday, hit by choppy demand in the United States and abroad from budget-stretched customers, reported Reuters.

“Rising fast-food prices over the past year have prompted consumers to cook cheaper meals at home and avoid eating out, hurting traffic across the industry. As a result, quick-service restaurant chains have turned to aggressive promotions in an attempt to attract value-seeking customers. Burger King, McDonald's, KFC, and Wendy's have all launched $5 value meals since June this year to get lower-income customers back into their outlets,” wrote Reuters.

"This is a challenging situation for the QSR market. I don't think anybody's going to be out of trouble anytime soon, but they're doing something that seems to be working to at least stop the deceleration in traffic," Danilo Gargiulo, senior analyst at Bernstein, told Reuters.

Reuters reported that Burger King's U.S. sales declined 0.4% in the quarter ending September 30, compared with a 6.6% rise last year, while KFC's same-store sales in the United States tumbled 5% in the same period, marking the third straight quarter of declines this year.