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Wendy's (WEN) Global Next Gen Restaurants Debut in the US
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The Wendy's Company (WEN - Free Report) debuted in Kansas and Oklahoma with two of its very first Global Next Gen restaurants, which are built upon the Global Next Gen restaurant design standard. The company expects to open more than 200 Global Next Gen restaurants through 2024.
The company developed a new Global Next Gen high-capacity kitchen for restaurants with the highest customer demand. The new kitchen model leverages the new restaurant design along with the additional benefits of a dual-sided kitchen layout and increased equipment capacity. This new kitchen design is expected to deliver nearly a 50% increase in kitchen output capacity compared to the Global Next Gen standard.
About Global Next Gen Restaurant Design Standard
On Aug 17, 2022, Wendy’s announced the new global restaurant design standard, Global Next Gen, for the purpose of delivering enhanced customer, crew and digital experiences. The design features a sleek and modern design with an optimized layout and next-generation technology integration to increase delivery efficiency.
The new design incorporates certain features, which are streamlined ordering, delivery pick-up window, dedicated mobile order pickup, reimagined kitchen and optimized infrastructure.
Wendy’s is optimistic about the unfolding of the new restaurant design. The company believes that its global structure will ensure the system-wide expansion of the newly designed restaurants aligned with the digital age.
Emphasis on Expansion
Wendy’s is steadfast in expanding its presence globally. The company is witnessing growth in the U.S. business backed by menu innovation, new restaurant openings and digital incorporation. In the second quarter of 2023, total restaurant openings in the US were 19 units, with total global openings amounting to 41 units. In the said quarter, total international restaurant openings were 22 units, up from 18 units reported in the prior year. Wendy’s solidified its long-term international restaurant pipeline with new restaurant development commitments in Canada. Moreover, it entered into a new master franchise agreement with Flynn Restaurant Group to expand its footprint in the Australian market with 200 new Wendy’s restaurants.
The company has a robust pipeline and is on track to achieve its global target of approximately 2% net unit growth in 2023 and 2-3% net unit growth in 2024, year over year. In 2025, the company anticipates global net unit growth in the range of 3-4% year over year.
Image Source: Zacks Investment Research
Shares of WEN have inched down 0.8% on Aug 15, during the trading session. Nonetheless, the stock gained 0.4% in the past month against the Zacks Retail - Restaurants industry’s decline of 4%.
DPZ delivered a trailing four-quarter earnings surprise of 4.8%, on average. Shares of the company have gained 13.7% in the year-to-date period. The Zacks Consensus Estimate for DPZ’s 2023 sales indicates a decline of 0.1% while earnings per share (EPS) indicates growth of 9.6%, from the previous year’s reported levels.
BJ's Restaurants currently sports a Zacks Rank of 1. BJRI delivered a trailing four-quarter earnings surprise of 121.2%, on average. Shares of the company have gained 24.7% in the year-to-date period.
The Zacks Consensus Estimate for BJRI’s 2023 sales and EPS indicates growth of 5.6% and 423.5%, respectively, from the previous year’s reported levels.
Builders FirstSource currently sports a Zacks Rank of 1. BLDR has a trailing four-quarter earnings surprise of 52.2%, on average. Shares of the company have rallied 132.3% in the year-to-date period.
The Zacks Consensus Estimate for BLDR’s 2023 sales and EPS indicates a decline of 23.2% and 32.3%, respectively, from the previous year’s reported levels.
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Wendy's (WEN) Global Next Gen Restaurants Debut in the US
The Wendy's Company (WEN - Free Report) debuted in Kansas and Oklahoma with two of its very first Global Next Gen restaurants, which are built upon the Global Next Gen restaurant design standard. The company expects to open more than 200 Global Next Gen restaurants through 2024.
The company developed a new Global Next Gen high-capacity kitchen for restaurants with the highest customer demand. The new kitchen model leverages the new restaurant design along with the additional benefits of a dual-sided kitchen layout and increased equipment capacity. This new kitchen design is expected to deliver nearly a 50% increase in kitchen output capacity compared to the Global Next Gen standard.
About Global Next Gen Restaurant Design Standard
On Aug 17, 2022, Wendy’s announced the new global restaurant design standard, Global Next Gen, for the purpose of delivering enhanced customer, crew and digital experiences. The design features a sleek and modern design with an optimized layout and next-generation technology integration to increase delivery efficiency.
The new design incorporates certain features, which are streamlined ordering, delivery pick-up window, dedicated mobile order pickup, reimagined kitchen and optimized infrastructure.
Wendy’s is optimistic about the unfolding of the new restaurant design. The company believes that its global structure will ensure the system-wide expansion of the newly designed restaurants aligned with the digital age.
Emphasis on Expansion
Wendy’s is steadfast in expanding its presence globally. The company is witnessing growth in the U.S. business backed by menu innovation, new restaurant openings and digital incorporation. In the second quarter of 2023, total restaurant openings in the US were 19 units, with total global openings amounting to 41 units. In the said quarter, total international restaurant openings were 22 units, up from 18 units reported in the prior year. Wendy’s solidified its long-term international restaurant pipeline with new restaurant development commitments in Canada. Moreover, it entered into a new master franchise agreement with Flynn Restaurant Group to expand its footprint in the Australian market with 200 new Wendy’s restaurants.
The company has a robust pipeline and is on track to achieve its global target of approximately 2% net unit growth in 2023 and 2-3% net unit growth in 2024, year over year. In 2025, the company anticipates global net unit growth in the range of 3-4% year over year.
Image Source: Zacks Investment Research
Shares of WEN have inched down 0.8% on Aug 15, during the trading session. Nonetheless, the stock gained 0.4% in the past month against the Zacks Retail - Restaurants industry’s decline of 4%.
Zacks Rank
Wendy’s currently carries a Zacks Rank #3 (Hold).
Key Picks
Some better-ranked stocks from the Retail-Wholesale sector are Domino's Pizza, Inc. (DPZ - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) and Builders FirstSource, Inc. (BLDR - Free Report) .
Domino's currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
DPZ delivered a trailing four-quarter earnings surprise of 4.8%, on average. Shares of the company have gained 13.7% in the year-to-date period. The Zacks Consensus Estimate for DPZ’s 2023 sales indicates a decline of 0.1% while earnings per share (EPS) indicates growth of 9.6%, from the previous year’s reported levels.
BJ's Restaurants currently sports a Zacks Rank of 1. BJRI delivered a trailing four-quarter earnings surprise of 121.2%, on average. Shares of the company have gained 24.7% in the year-to-date period.
The Zacks Consensus Estimate for BJRI’s 2023 sales and EPS indicates growth of 5.6% and 423.5%, respectively, from the previous year’s reported levels.
Builders FirstSource currently sports a Zacks Rank of 1. BLDR has a trailing four-quarter earnings surprise of 52.2%, on average. Shares of the company have rallied 132.3% in the year-to-date period.
The Zacks Consensus Estimate for BLDR’s 2023 sales and EPS indicates a decline of 23.2% and 32.3%, respectively, from the previous year’s reported levels.