On Mar. 6, Wendy’s announced its plans to open 1,000 new locations worldwide over the next four years to expand its international footprint. It also aims to reach $18 billion in sales by the end of 2028 with 5% to 6% annual sales growth.
If this project goes as planned, the fast food chain expects to nearly double its global footprint and sales. Although a huge increase, here are the strategies it plans to execute to reach these goals.
According to Wendy’s earnings report for the full year of 2024, global restaurant sales grew 3.1% compared to last year, with its U.S. market increasing by 2.2% and its International market up 9%.
Related: Popular restaurant chains preview exciting Spring 2025 menu releases
Prioritizing restaurant expansion in its international markets isn’t a new idea for Wendy’s. In 2023, the fast food chain built more locations abroad than in the last few years and reduced the number of restaurants domestically.
In 2024, Wendy’s ended with 5,933 restaurants across the U.S., a 1.6% decline from the year prior. Internationally, it ended with 1,307 restaurants, representing an 8% unit increase.
“The Wendy’s brand has tremendous strength, and we will unlock its full potential, scaling our system to match the power of our brand,” said Wendy’s CEO Kirk Tanner during the company’s Investor Day.
Fast food meal displayed at a Wendy’s location.
Wendy’s plans to increase sales by targeting specific demographics
Providing high-quality food and better offerings is one of Wendy’s main strategies to achieve its global sales goal. The fast food chain wants to target this point by focusing on three main demographics: families, the Hispanic community, and Gen Zers.
Wendy’s (WEN) aims to capture these main audiences by collaborating with various brands and fostering innovation by launching new menu items.
Related: Wendy’s launches nostalgic collaboration disappointing fans
During its Investor Day, Wendy’s revealed that it had already been working on a partnership with Takis, which will come out later this year. It also confirmed that new Frosty flavors are in the making, with innovative additions such as mix-ins and swirls. These new Frosty additions are very similar to those of the McDonald’s (MCD) McFlurry, one of Wendy’s strongest rivals.
“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. Our relentless pursuit of excellence in our food and our restaurants will position Wendy’s for long-term success as we win across our global markets,” said Tanner.
Wendy’s wants to open more restaurants abroad to grow internationally
Although Wendy’s is a well-known restaurant in the U.S., its brand is not as recognizable in the international markets as its rivals. Therefore, fast food chain wants to expand its brand awareness by opening 70% of the projected 1,000 new restaurants aboard, propelling international growth.
Two years ago, Wendy’s released a new restaurant design that featured new technology like ordering kiosks and AI-powered drive-thru boards. It also reduced the size of its usual restaurants to less than a quarter acre, lowering the required energy to run those units by 10%.
More Retail News:
Applebee’s announces major change to win back customersPopular cereal manufacturer delivers harsh news amid strugglesTaco Bell reveals 30 new menu items launching in 2025
By the end of 2024, the fast food chain built nearly 300 restaurants with the new design, which made operations more efficient and increased profitability. The changes made to Wendy’s new restaurant design will allow it to build more restaurants for less money, making doubling its units a more reachable goal.
“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 Wendy’s CFO Ken Cook.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
