Wendy’s (WEN) is aiming to double revenue growth and increase its global sales to between $17.5 billion and $18 billion by 2028, the company said at its investor day at its Dublin, Ohio base today.
Setting out ambitious long-term financial targets, the burger restaurant said it will accelerate sales growth over the next three years from a range of around 2-3% to 5-6% annually, taking total annual systemwide sales upwards from about $14.5 billion in 2024.
The fast food chain also outlined expectations to add 1,000 net new restaurants globally over the period, which would take the total to between 8,100 and 8,300 in three years’ time. Meanwhile adjusted earnings before interest, taxes, and amortization are expected to be between $650 million and $700 million.
Wendy’s says is investing in building new restaurants around the globe and deploying technology that it says will enhance the customer experience and increase restaurant profitability.
“I’m excited about our upcoming innovation and collaborations that will build on our high-quality menu with fresh ingredients as we continue to elevate our customer focus, putting the customer at the center of everything we do,” said Kirk Tanner, President and Chief Executive Officer.
Wendy’s Flips to New Algorithm
The plans are based on a new long-term algorithm that sets annual net unit growth between 3% and 4%, annual sales growth between 5% and 6%, and annual adjusted Ebitda growth between 7% and 8%.
The company reaffirmed its outlook of global sales growth between 2% and 3% for 2025, as well as adjusted earnings per share between $0.98 and $1.02.
Last month Wendy’s reported systemwide sales grew 5.4% in its Fiscal fourth quarter, reaching $3.7 billion, including same-restaurant sales growth of 4.3%. For 2024 Fiscal year as a whole systemwide sales grew 3.1%, reaching $14.5 billion, including same-restaurant sales growth of 1.5%.
By comparison, McDonald’s (MCD) said global systemwide sales were over $130 billion for the full year. However, the market is tough – MCD said global comparable sales decreased 0.1% across the year as it reported a mixed quarterly earnings update.
Is WEN a Good Stock to Buy?
Overall, Wall Street has a Hold rating on WEN stock, based on four Buys, 15 Holds and three Sells. The average WEN price target of $17.25 implies about 17% upside potential, although analysts may change their views after the new targets were set out.
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