DUBLIN, Ohio - Wendy's (NASDAQ:WEN), the renowned American fast-food chain, has announced new development agreements to establish its presence in the Republic of Ireland and Romania, marking the brand's continued expansion in Europe.
The company has set its sights on opening restaurants in these new markets starting in 2025 as part of its strategy to develop hundreds of locations across Europe over the next decade.
The expansion follows Wendy's re-entry into the United Kingdom in 2021, where it has laid the groundwork for growth, planning to increase its UK footprint to 400 restaurants in the future. Currently, the brand is poised to operate up to 50 restaurants in the UK by the end of the year, with a new opening scheduled in Liverpool this summer.
E.J. Wunch, President, International for The Wendy's Company, emphasized the importance of Europe as a key market for international growth, stating that the company is focused on partnering with franchisees who align with Wendy's ambition to scale its European restaurant footprint. Michael Clarke, Managing Director for Wendy's Europe, expressed enthusiasm for the expansion, noting the strong customer demand for new locations across the continent.
Wendy's is actively seeking franchise partners with robust operational experience and a history of brand growth. The company aims to leverage its established supply chain, regional teams, and marketing partners to support the expansion.
The fast-food chain, known for its square hamburgers, fresh beef, and signature items like the Baconator®, enjoys a global presence with over 7,000 restaurants in more than 30 markets. Wendy's has experienced 13 years of consecutive global same-restaurant sales growth, attributing its success to solid partnerships with franchisees and suppliers.
The company's international growth is a major component of its strategy, with plans to make significant progress towards its development goals by 2025. This expansion aligns with Wendy's long-standing commitment to quality food and customer service as envisioned by its founder, Dave Thomas.
This strategic move is based on a press release statement from The Wendy's Company.
InvestingPro Insights
As Wendy's (NASDAQ:WEN) sets its sights on international expansion with plans to enter the Republic of Ireland and Romania, the company's financial health remains a critical factor for potential investors. With a market capitalization of $3.25 billion and a solid track record of dividend payments, Wendy's presents an interesting profile for those looking at the stock's fundamentals.
InvestingPro data indicates a Price/Earnings (P/E) ratio of 16.06, which adjusts to a slightly more attractive 14.96 when considering the last twelve months as of Q1 2024. This aligns with the InvestingPro Tip that highlights the stock's low P/E ratio relative to near-term earnings growth. Additionally, the company's PEG ratio, which measures the P/E relative to earnings growth, stands at 0.93 for the same period, suggesting a potentially undervalued stock in terms of growth.
Another InvestingPro Tip to consider is Wendy's high shareholder yield, which is supported by a robust dividend yield of 6.32% as of the latest data. This is particularly noteworthy for income-focused investors, especially considering that Wendy's has raised its dividend for three consecutive years and maintained payments for 22 consecutive years. Furthermore, the company's commitment to rewarding shareholders is underscored by the fact that it pays a significant dividend.
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