Wendy’s CEO Kirk Tanner is often asked, “Why Wendy’s?” He claims the question has been posed about 100 times.
His answer is always the same.
“It’s our potential,” Tanner said at the company’s Investor Day on Thursday. “Our potential to grow faster.”
The burger giant outlined plans to add 1,000 net new restaurants globally by 2028, placing it at 8,100 to 8,300 (up from 7,240). Within the same timeframe, Wendy’s eyes $17.5 billion to $18 billion in global system sales (up from $14.5 billion) and $650 million to $700 million in adjusted EBITDA (up from $544 million). Beyond that, the chain is shooting for a long-term algorithm of 3 to 4 percent net unit growth, 5 to 6 percent system sales growth, and 7 to 8 percent adjusted EBITDA growth.
Wendy’s finished 2024 with 5,933 U.S. restaurants. It wants to add a net of 300 domestic units through 2028, or 30 percent of the chain’s global development plan. There’s currently one Wendy’s for every 56,000 Americans. The chain hinted that McDonald’s has one restaurant for every 36,000 Americans.
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Since introducing the Global Next Gen design two years ago, nearly 300 locations have opened worldwide. With a digital-first approach, the prototype includes dedicated lanes and windows for delivery and mobile orders and an energy-efficient model that reduces energy use by an estimated 10 percent. The design also offers flexibility in real estate selection; Wendy’s can open new locations on plots as small as a quarter of an acre without compromising the full experience. Redesigned kitchens equipped with productivity upgrades have contributed to operational efficiency, leading to higher profitability and shorter payback periods.
The brand will grow with healthier locations. The chain is using market analysis tools to identify underperforming markets and replace them with high-potential restaurants. In November 2024, Wendy’s told investors it planned to shutter 140 restaurants. Among the 97 net U.S. closures in 2024, 78 came in the fourth quarter.
Approximately 80 percent of the brand’s largest franchisees are engaged in new development plans. The company has also been actively recruiting new operators. To spark expansion, Wendy’s is using its “build-to-suit” program, in which the company co-invests in new restaurants in exchange for higher royalty rates and rent payments. These stores also contribute to the national advertising fund and help the brand reach new guests. In 2025, the company expects to invest around $70 million in the build-to-suit program.
Wendy’s wants skin in the game too. It plans to double the net growth rate of company-operated restaurants so that it can serve as a role model for its operational standards, expansion playbook, and the benefits of the Global Next Gen design.
“I’m confident that we have the right focused strategies in place for the US business to deliver fresh, famous food, exceptional customer experiences, and to accelerate new restaurant development,” Pringle said. “There’s no doubt in my mind that Wendy’s is positioned to live up to its potential.”
Outside of the U.S., the chain finished 2024 with 1,307 international restaurants in 33 countries, which earned roughly $2 billion in sales. Roughly 300 net new stores have opened in the past three years.
From 2025 to 2028, Wendy’s wants to add 700 net new international locations or an 11 percent net growth CAGR. The standard is Canada, which has 438 stores (one restaurant for every 80,000 Canadians), approximately $1 billion in revenue, and a fully integrated supply chain across the country. By 2028, Wendy’s expects to add 300 locations in Asia Pacific and the Middle East, 150 in Europe, 125 in Latin America, and 125 in Canada.
To achieve its growth goals, Wendy’s plans to put its money where its mouth is. It will spend an average of $115 million on annual capital expenditures between 2025 and 2028—50 percent on development, 30 percent on digital capabilities, and 20 percent on other measures.
“In order to execute on our strategy, we are investing in building new restaurants around the globe and deploying technology that will enhance the customer experience and increase restaurant profitability,” said CFO Ken Cook. “Our objective is to create value for our customers, our franchisees, and our shareholders.”
The top line was a bright spot for the brand to end the year.
Wendy’s saw its highest same-store sales performance since 2021 in October when comps rocketed 10 percent, year-over-year, thanks to a SpongeBob Collaboration that showed “what we can accomplish when we combine two iconic brands with multigenerational appeal,” CFO Ken Cook said. At its peak, the nearly doubled-in-size Krabby Patty drove a 20 percent lift in same-store sales with increased traffic and average check. Comps leveled after, leading to a Q4 result of 4.1 percent on top of last year’s 0.9 percent growth. For the year, Wendy’s global same-store sales hiked 4.3 percent, giving the brand its 14th consecutive year of gains.
In 2025, the chain projects 2 to 3 percent global system sales growth, $550 million to $560 million in adjusted EBITDA, $100 million to $110 million in capital expenditures, and $275 million to $285 million in free cash flow.
