Wendy's Unveils Next Chapter of Growth and Announces Long-Term Financial Algorithm at 2025 Investor Day

PR Newswire

DUBLIN, Ohio, March 6, 2025

   -- Shares plans to update core menu items and launch impactful innovation to 
      meet consumer preferences and win in fast growing segments 
 
   -- Details increased investments in technology and operations to enhance the 
      customer experience 
 
   -- Outlines expectations to add 1,000 net new restaurants globally by 2028 
 
   -- Announces long-term financial algorithm of 3-4% annual net unit growth, 
      5-6% annual systemwide sales growth, and 7-8% annual adjusted EBITDA 
      growth 

DUBLIN, Ohio, March 6, 2025 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) will host its 2025 Investor Day today at its Restaurant Support Center in Dublin, Ohio. The event will feature presentations from members of Wendy's senior leadership team, who will outline the Company's plans to accelerate growth and its long-term financial algorithm. Management presentations will begin at 8:30 a.m. ET, followed by a question-and-answer session.

"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 Kirk Tanner, President and Chief Executive Officer. "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."

"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 Ken Cook, Chief Financial Officer. "Our objective is to create value for our customers, our franchisees, and our shareholders."

At today's event, Kirk Tanner and members of Wendy's leadership team will discuss the three pillars of its growth strategy, including:

   -- Doubling Down on Fresh, Famous Food: Guided by its customer first 
      approach and enduring commitment to providing the highest quality food at 
      great value, Wendy's is expanding into areas of the greatest opportunity 
      in the market, updating craveable core menu items, driving impactful 
      innovation, and delivering uniquely relevant branding, marketing and 
      collaborations. 
 
   -- Delivering an Exceptional Customer Experience: Wendy's is executing with 
      a new level of operational intensity to ensure the in-restaurant and 
      digital experience is perfect every time. This includes creating a more 
      compelling customer experience, prioritizing convenience through seamless 
      digital and technology integration, and raising the level of hospitality, 
      consistency and executional excellence across the global system. 
 
   -- Accelerating Global Unit Growth: Wendy's is deploying a global new unit 
      expansion strategy to meet the growing demand for Wendy's across the 
      globe. Through a "globally great, locally even better" approach, the 
      Company is investing in key markets and globalizing its supply chain to 
      build stronghold positions to fuel growth and deliver Wendy's fresh 
      famous food at scale. 

Long-Term Financial Algorithm

 
Annual net unit growth          3 to 4 percent 
Annual systemwide sales growth  5 to 6 percent 
Annual Adj. EBITDA growth       7 to 8 percent 
 

2028 Growth Targets

 
Restaurant Count          8,100 - 8,300 
Global systemwide sales   $17.5 - $18.0 billion 
Adj. EBITDA               $650 - $700 million 
 

Reaffirms Full Year 2025 Outlook

 
Global systemwide sales growth   2 to 3 percent 
Adj. earnings per share          $0.98 to $1.02 
Adj. EBITDA                      $550 to $560 million 
Capital expenditures             $100 to $110 million 
Free cash flow                   $275 to $285 million 
 

This release includes forward-looking projections for certain non-GAAP financial measures, including systemwide sales, adjusted EBITDA, adjusted earnings per share and free cash flow. The Company excludes certain expenses and benefits from adjusted EBITDA, adjusted earnings per share and free cash flow, such as the impact from our advertising funds, including the net change in the restricted operating assets and liabilities and any excess or deficit of advertising fund revenues over advertising fund expenses, impairment of long-lived assets, reorganization and realignment costs, system optimization gains, net, amortization of cloud computing arrangements, gain on early extinguishment of debt, net, and the timing and resolution of certain tax matters. Due to the uncertainty and variability of the nature and amount of those expenses and benefits, the Company is unable without unreasonable effort to provide projections of net income, earnings per share or net cash provided by operating activities, or a reconciliation of those projected measures.

How to Participate: The Investor Day event will be accessible to all interested parties via live webcast from the Company's Investor Relations website at www.irwendys.com. An archived replay of the webcast, including the related presentation materials, will also be available at www.irwendys.com.

Forward-Looking Statements

This release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "may," "believes," "plans," "expects," "anticipates," "intends," "estimate," "goal," "upcoming," "outlook," "guidance" or the negation thereof, or similar expressions. In addition, all statements that address future operating, financial or business performance, strategies or initiatives, future efficiencies or savings, anticipated costs or charges, future capitalization, anticipated impacts of recent or pending investments or transactions and statements expressing general views about future results or brand health are forward-looking statements within the meaning of the Reform Act. Forward-looking statements are based on the Company's expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. For all such forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. The Company's actual results, performance and achievements may differ materially from any future results, performance or achievements expressed or implied by the Company's forward-looking statements.

Many important factors could affect the Company's future results and cause those results to differ materially from those expressed in or implied by the Company's forward-looking statements. Such factors include, but are not limited to, the following: (1) the impact of competition or poor customer experiences at Wendy's restaurants; (2) adverse economic conditions or disruptions, including in regions with a high concentration of Wendy's restaurants; (3) changes in discretionary consumer spending and consumer tastes and preferences; (4) impacts to the Company's corporate reputation or the value and perception of the Company's brand; (5) the effectiveness of the Company's marketing and advertising programs and new product development; (6) the Company's ability to manage the impact of social or digital media; (7) the Company's ability to protect its intellectual property; (8) food safety events or health concerns involving the Company's products; (9) our ability to deliver global sales growth and maintain or grow market share across our dayparts; (10) the Company's ability to achieve its growth strategy through new restaurant development; (11) the Company's ability to effectively manage the acquisition and disposition of restaurants or successfully implement other strategic initiatives; (12) risks associated with leasing and owning significant amounts of real estate, including environmental matters; (13) risks associated with the Company's international operations, including the ability to execute its international growth strategy; (14) changes in commodity and other operating costs; (15) shortages or interruptions in the supply or distribution of the Company's products and other risks associated with the Company's independent supply chain purchasing co-op; (16) the impact of increased labor costs or labor shortages; (17) the continued succession and retention of key personnel and the effectiveness of the Company's leadership and organizational structure; (18) risks associated with the Company's digital commerce strategy, platforms and technologies, including its ability to adapt to changes in industry trends and consumer preferences; (19) the Company's dependence on computer systems and information technology, including risks associated with the failure or interruption of its systems or technology or the occurrence of cyber incidents or deficiencies; (20) risks associated with the Company's securitized financing facility and other debt agreements, including compliance with operational and financial covenants, restrictions on its ability to raise additional capital, the impact of its overall debt levels and the Company's ability to generate sufficient cash flow to meet its debt service obligations and operate its business; (21) risks associated with the Company's capital allocation policy, including the amount and timing of equity and debt repurchases and dividend payments; (22) risks associated with complaints and litigation, compliance with legal and regulatory requirements and an increased focus on environmental, social and governance issues; (23) risks associated with the availability and cost of insurance, changes in accounting standards, the recognition of impairment or other charges,

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