The Wendy’s Company (WEN) has announced the signing of two new development agreements with franchisees in Ireland and Romania. This deal marks a significant step in the brand’s quest to become a major player in the global quick-service restaurant industry, aiming to attract a diverse and discerning customer base.
Wendy’s also revealed plans to open a new restaurant in Liverpool, signaling its continued expansion in northern U.K. The company aims to open up to 50 restaurants in the U.K. by the end of 2024, with a long-term goal of reaching 400 locations.
Additionally, Wendy’s is exploring further expansion into Continental Europe, particularly Spain.
Company management emphasized that Europe is a strategic market for global growth. To support this momentum, Wendy’s has invested in local resources, including a strong supply chain, regional operations teams, and top-tier marketing and creative agency partners.
Wendy’s continues to prioritize international expansion as a key driver of growth. The company’s global growth strategy focuses on international markets for 70 percent of its expansion efforts through 2025. Wendy’s has made several incremental and accelerated commitments to rapidly grow its global presence and strengthen its long-term development pipeline.
Leveraging strong franchisee relationships and a commitment to quality, Wendy’s is poised to continue its growth trajectory, bringing its popular menu items to a wider audience. The company is optimistic that this expansion will be a key growth driver in the coming periods.
Stock Performance
In the past three months, Wendy’s stock has declined by 15.2%, compared to an 8.9% fall in the industry. This decline is mainly due to a challenging macro environment and inflationary pressures on labor costs. To address these challenges, the company plans to strategically adjust select menu prices and product offerings.
Wendy’s focuses on menu innovation, technological upgrades, and international expansion to drive growth. The emphasis on breakfast offerings, cost management, and strategic pricing may help the stock recover in the near term. The company also plans to enhance its breakfast options to support the restaurant’s economic model and boost sales.
Zacks Rank & Key Picks
Wendy’s currently holds a Zacks Rank #3 (Hold).
Here are some better-ranked stocks in the Zacks Retail-Wholesale sector:
Brinker International, Inc. (EAT): Zacks Rank #1 (Strong Buy). Brinker has an average earnings surprise of 213.4% over the past four quarters. Its shares have surged 74% in the past year. The Zacks Consensus Estimate for Brinker’s 2024 sales and earnings per share (EPS) indicates growth of 5.2% and 43.1%, respectively, from the previous year.
Wingstop Inc. (WING): Zacks Rank #2 (Buy). Wingstop has a trailing four-quarter negative earnings surprise of 21.4%. The stock has surged 109% in the past year. The Zacks Consensus Estimate for Wingstop’s 2024 sales and EPS suggests increases of 27.9% and 37.9%, respectively, from the prior year.
El Pollo Loco Holdings, Inc. (LOCO): Zacks Rank #2 (Buy). El Pollo Loco has an average earnings surprise of 19.4% over the past four quarters. Its shares have risen 9.6% in the past year. The Zacks Consensus Estimate for El Pollo Loco’s 2025 sales and EPS indicates growth of 3.8% and 9.9%, respectively, from the previous year.
Wendy’s expansion into Europe and strategic growth plans highlight its commitment to becoming a significant global player in the quick-service restaurant industry.