Wendy's has projected a significant acceleration in its annual sales growth over a long-term horizon, particularly emphasizing a long-term sales growth target set for 2025. The company anticipates adding approximately 1,000 new restaurants by the year 2028. Systemwide sales for Wendy's are expected to rise between 5% to 6% annually over the long term, aiming for a total of $17.5 billion to $18 billion in sales by 2028.
This considerable projection is in contrast to the previously affirmed sales growth guidance for 2025, which stands at only 2% to 3%. In a recent report, Wendy's revealed that systemwide sales experienced an increase of 3.1% in 2024, reaching a total of $14.49 billion. This upward trend appears to affirm the brand's robust market positioning and commitment to expansion.
Furthermore, net restaurant units are projected to grow annually by 3% to 4% in the long term, with a hopeful forecast of total units reaching between 8,100 and 8,300 by 2028. In comparison, the restaurant count was recorded at 7,240 at the end of 2024, reflecting stability from the previous year.
Wendy's Chief Financial Officer, Ken Cook, emphasized the company’s focus on investing in new restaurant developments across the globe while also deploying advanced technologies designed to enhance customer experiences and improve restaurant profitability. The firm has reiterated its non-GAAP earnings per share guidance for the current year, estimating figures between $0.98 and $1.02.
Analysts, according to a FactSet survey, are on average projecting an adjusted EPS of $1.01 for this year, signifying optimistic investor sentiment towards the brand's performance. In terms of long-term earnings capacity, Wendy's anticipates adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) will see an annual rise of 7% to 8%, forecasting figures between $650 million and $700 million by 2028.
It's worth noting that adjusted EBITDA experienced a modest growth of just 1.4% in 2024, climbing to $543.6 million. Management remains steadfast in expecting the adjusted EBITDA to be situated between $550 million and $560 million in the year 2025. Current Stock Price: 15.16, Change: +0.21, Percent Change: +1.37..