Wendy’s, the popular fast-food chain, recently announced its plans to increase its store count by a net 1,000 restaurants globally by the end of 2028. This long-term growth strategy was unveiled during the company’s Investor Day, where Wendy’s outlined its goal of achieving an annual net unit growth rate of 3% to 4%. By reaching this target, Wendy’s aims to have between 8,100 and 8,300 stores operating worldwide by 2028, up from the 7,240 units it had at the end of 2024.
To support this ambitious goal, Wendy’s will focus on a combination of domestic and international expansion. The company plans to globalize its supply chain and establish stronghold positions in key markets to facilitate its growth strategy. Wendy’s international unit growth has been particularly strong, with CEO Kirk Tanner highlighting a 11% system-wide sales growth on a constant currency basis in 2024, driven by the opening of 276 new units globally.
In 2021, Wendy’s had projected a global unit count between 8,500 and 9,000 for that year, with plans to leverage Reef Technology’s ghost kitchen trailers to fuel its growth. However, Wendy’s shifted its strategy in 2022 after consumers showed little interest in ghost kitchens and the unit economics proved to be disappointing. Despite this setback, Wendy’s remains committed to its long-term growth plans and is exploring new avenues for expansion.
Competitors in the fast-food industry are also ramping up their unit growth efforts, with Taco Bell announcing its intention to triple its international store count by the end of the decade. This trend indicates a strong focus on global expansion within the industry, as companies seek to capitalize on emerging markets and consumer demand for convenient dining options.
In line with its growth strategy, Wendy’s has been opening locations built to the standards of its Global Next Gen prototype, which features a lower buildout cost and streamlined operations to enhance efficiency. These new units are designed to facilitate faster growth and increase the company’s overall development rate.
Looking ahead to 2025, Wendy’s expects to open between 150 and 200 new units, with a significant portion of these coming from international markets. The company anticipates that about two-thirds of its new units will be located abroad, with a focus on markets in Canada, Europe, Asia-Pacific, Middle East, and Africa. By maintaining a consistent split between domestic and international expansion, Wendy’s aims to add approximately 330 net new units in the U.S. and 660 units abroad in the coming years.
In conclusion, Wendy’s ambitious growth plans reflect its commitment to expanding its global footprint and capturing new market opportunities. By leveraging its innovative strategies and focusing on both domestic and international growth, Wendy’s is well-positioned to achieve its goal of becoming a leading player in the competitive fast-food industry.
