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DUBLIN, Ohio - The Wendy’s Company (NASDAQ:WEN), currently valued at $3 billion with a P/E ratio of 15.84, announced its aggressive growth strategy during its 2025 Investor Day held today. The fast-food chain, which has maintained a solid financial health score according to InvestingPro analysis, plans to add 1,000 new restaurants worldwide by 2028, aiming for a 3-4% annual increase in net units. Wendy’s also projects a 5-6% yearly rise in systemwide sales and a 7-8% annual growth in adjusted EBITDA, building on its current revenue growth of 2.98%.
As part of its expansion, Wendy’s is focusing on three strategic pillars: revamping its menu with fresh, high-quality offerings, improving customer experience through technology and operational enhancements, and accelerating its presence globally. The company is investing in technology to create a seamless digital experience and operational excellence across its restaurants. Notable for investors, Wendy’s has maintained dividend payments for 23 consecutive years, currently offering a significant 6.69% dividend yield.
Wendy’s leadership, including President and CEO Kirk Tanner, emphasized the importance of customer-centric innovation and the brand’s commitment to quality food. CFO Ken Cook highlighted the company’s objective to create value for customers, franchisees, and shareholders alike.
The company has set ambitious targets for 2028, including reaching a restaurant count between 8,100 and 8,300, achieving global systemwide sales of $17.5 to $18.0 billion, and adjusted EBITDA of $650 to $700 million. Wendy’s reaffirmed its full-year 2025 outlook, expecting global systemwide sales growth of 2 to 3 percent, adjusted earnings per share between $0.98 and $1.02, and adjusted EBITDA from $550 to $560 million. InvestingPro analysis suggests the stock is trading near its Fair Value, with 20 analysts recently revising their earnings expectations downward for the upcoming period. Discover more insights and 6 additional ProTips with an InvestingPro subscription, including access to the comprehensive Pro Research Report available for Wendy’s and 1,400+ other US stocks.
Wendy’s growth strategy and financial projections are forward-looking statements subject to a multitude of risks and uncertainties that could affect actual results. The company’s predominantly franchised business model also presents unique challenges and opportunities.
This news is based on a press release statement from The Wendy’s Company. The company’s complete financial details and projections are available on its Investor Relations website.
In other recent news, Wendy’s reported its fourth-quarter 2024 earnings, surpassing expectations with an adjusted EPS of $0.25, beating the forecast of $0.24. The company also exceeded revenue estimates, reporting $574.3 million, reflecting strong operational performance. Despite these positive results, analysts have made adjustments to their stock price targets for Wendy’s. UBS analyst Dennis Geiger lowered the price target to $15 from $17, maintaining a Neutral rating, after noting solid same-store sales and adjusted EBITDA that exceeded expectations. Similarly, Citi analysts reduced their price target to $15.50 from $16.00, citing ongoing investor concerns about the chain’s ability to maintain growth in the U.S. market.
JPMorgan analyst Rahul Krotthapalli also revised the price target, reducing it to $17 from $20, while keeping a Neutral rating on the stock. The analyst highlighted the importance of enhancing cash returns for new U.S. restaurant units under the leadership of CEO Kirk Tanner and CFO Ken Cook. Wendy’s has set a 2025 global system-wide sales growth target of 2-3% and a net unit growth target of 2-3%, with expectations for adjusted EBITDA between $550-$560 million. The company plans to present updated strategic plans and long-term guidance during its investor day scheduled for March 6, 2025.
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