Wendy’s Bets on AI and New Stores to Reset Growth
Wendy’s links a global buildout of 1,000 net new restaurants to an AI-first operating model, leaning on international markets, selective U.S. closures, and a brand refresh to steady sales and lift profitability.
Photo by Iwona Castiello d'Antonio on Unsplash
A Two-Pillar Bet On Speed And Scale
Wendy’s is setting the table for a new chapter with two steady hands: expansion and technology. The goal is specific and time-bound—"1,000" net new restaurants by the end of 2028, scaling the system to "8,100" to "8,300" units from "approximately 7,240" at the end of 2024. The company frames this not as growth for growth’s sake, but as a gentle redesign of how the brand serves people, linking new builds to an AI-enabled operating model meant to make every order feel more accurate, more effortless. The financial mood music is softer. Global systemwide sales were down "1.8%" in Q2 2025, with particular weakness in the U.S. for the period ending "June 29." Into that headwind, CFO Ken Cook drew a clean line between restaurant development and digital modernization: "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." It reads like a promise to make speed, precision, and consistency the standard garnish on every visit. The tone here matters. By explicitly pairing physical growth with a technology refresh, Wendy’s signals that efficiency gains are not a side project but the main course—served alongside a broader footprint designed for today’s drive‑thru and digital habits. Analysis: The unit target and AI-first model suggest Wendy’s is using operational upgrades to support top-line recovery and unit economics while it builds toward a larger, more consistent system.
Where The Growth Leads
The company’s world map is the real driver. International markets are expected to deliver "about 70%" of overall growth by 2028, as Wendy’s targets "2,000" international restaurants. In just three years, the brand expanded to "more than 1,300" locations across "33" countries, a "9%" net unit CAGR that is now projected to accelerate to "11%" over the next four years. The pattern is clear: build where new units can open more quickly, and where the appetite for a familiar but refreshed experience is still deepening. Density details confirm the headroom. Canada holds "over 400" restaurants and contributes "about $1 billion" in revenue, at roughly "one restaurant per 80,000" people. The U.S., in contrast, sits at "approximately one per 56,000"—a denser field, yet still with room for thoughtful infill. This is a portfolio approach, mixing fresh international entries with selective North American additions to keep the brand reachable without crowding its own counters. There’s a gentle hospitality to the strategy: meet more guests where they are, then standardize the service so the experience feels dependable, whether in Calgary or Kolkata. Analysis: Emphasizing international growth and calibrated density shows Wendy’s is prioritizing markets with faster scaling potential while keeping a measured pace in the U.S.
Blueprint In Motion: Openings And Tech
Momentum is already visible. Wendy’s opened "118" new restaurants globally in the first half of 2025, including "44" in Q2. The pattern includes strengthening footholds in Canada, India, and the UK, and a first-time debut in Romania—a blend of core‑market growth and new‑market entry that suggests a careful but forward posture. Development agreements add visibility: "170" restaurants in Italy over the "next decade" and "20" in Armenia over "five years." These commitments stretch beyond the 2028 horizon, but they sketch a long runway for the brand’s footprint. On the technology side, the company accelerated FreshAI, a voice-enabled ordering system, with deployments at "over 160" U.S. locations as of early May and plans to reach "more than 500" by year-end; projections point to "500 to 600" locations with voice AI by 2025 year-end. The stack extends beyond the headset: digital menu boards; an app with gamified engagement and targeted messaging that pushed conversion to record highs and drove a digital mix "exceeding 20%" of total sales in Q1; plus menu item label printers and smart delivery scales aimed at better accuracy. The playbook reads like a standard kit for new builds: open the doors with the same digital bones, tune for drive‑thru throughput, and keep delivery precise. Analysis: Simultaneous new-unit growth and synchronized tech rollout indicate an operating model designed to scale consistently, especially in drive-thru and digital channels.
Hands On Oversight, Measured Spend
Leadership has kept the technology close. Chief Executive Kirk Tanner said FreshAI has improved order accuracy and labor efficiency and helped drive average check growth, while enhancing personalization and convenience for customers. He tests the system multiple times weekly at a local store near the company’s headquarters in Dublin, Ohio, a small but telling ritual that links executive oversight to the everyday cadence of the drive‑thru. Financial stewardship echoes that focus. Chief Accounting Officer Suzie Thuerk reaffirmed that the company would "continue to invest in the resources and technology needed to deliver on our strategic priorities while tightly managing discretionary spending." The practical translation: fund what improves the guest experience and the economics of each restaurant, keep the extras trim, and hold the program accountable to results in the lane and on the app. CFO Ken Cook’s earlier framing—"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"—aligns the capital plan with observed gains in accuracy, speed, and check size. Analysis: Executive involvement and disciplined spending reinforce that AI and digital upgrades are core to the strategy and tied to operational outcomes.
Pruning To Help The Garden Thrive
With Q2 2025 global systemwide sales down "1.8%" and U.S. softness notable through "June 29," Wendy’s is also trimming branches. The company plans to close a "mid‑single‑digit" percentage of U.S. restaurants—"around 300" units—beginning in "late 2025" and continuing into "2026," following "240" closures in 2024. Interim CEO Ken Cook linked the pruning to performance at the remaining base, saying closures would enable franchisees to reinvest in upgrades, including kitchen equipment and digital menu boards. There’s a quiet logic to the sequence: concentrate capital where it can refresh the guest experience most meaningfully, lift throughput, and steady margins. In Q2 2025, the company earmarked "around $10 million" specifically for technology initiatives, even as it manages discretionary spending tightly. The intent is to cluster improvements—voice ordering, digital boards, and accuracy tools—where franchisees are committed to modernizing. The effect should be felt in the line: faster handoffs, fewer order corrections, and a service rhythm that feels calm even at the lunch rush. Analysis: Closures act as a reset to strengthen average unit economics, while targeted tech spending focuses gains on locations positioned to benefit.
Project Fresh Adds Flavor And Focus
A revitalization effort called Project Fresh brings a marketing and menu lift to the operational backbone. Led by former Taco Bell and Yum! Brands CEO Greg Creed, the program concentrates on enhancing marketing, optimizing labor, and adjusting operating hours to nudge each restaurant’s performance. The menu centerpiece is a new chicken line, "Tendys," paired with "six" new sauces—a small, vivid way to invite guests back and to affirm the brand’s place in the chicken conversation. These moves sit neatly beside the digital and drive‑thru upgrades. A more personalized, accurate order experience has more to offer when the menu itself feels new. Gamified engagement and targeted messaging inside the app have already helped drive record-high conversion rates, supported by a digital sales mix "exceeding 20%" in Q1—an early hint that when the service is quicker and the message is timely, guests respond. It’s the classic pairing of form and flavor: make the line smoother, then give people something to look forward to when they reach the window. Analysis: Project Fresh is designed to convert operational improvements into demand, ensuring that faster, more accurate service is matched with newsworthy menu items and sharper marketing.
What We Know And What We Don’t
The plan is studded with clear markers and a few open questions. Targets for "1,000" net new restaurants, "2,000" international units, and a system sized to "8,100" to "8,300" restaurants set the destination. FreshAI’s footprint is also scoped, with "more than 500" installations projected and "500 to 600" locations expected with voice AI by 2025 year-end. Yet specific unit-level returns—from exact accuracy percentages to minute-per-order savings—are not disclosed. Franchisee adoption and execution will shape outcomes, and those details sit outside the current view. Development agreements of "170" units in Italy across the "next decade" and "20" in Armenia over "five years" stretch beyond 2028, and local considerations like permitting and build costs are not provided. Even the closure forecast—"around 300" U.S. units tied to a "mid‑single‑digit" percentage—may flex with market conditions. The arc is legible, but the tempo will depend on how consistently the technology performs and how aligned operators are in rolling it out. Analysis: Clear milestones are balanced by execution variables, indicating progress will hinge on operational follow‑through and franchisee alignment.
A Calm Rhythm For The Road Ahead
Wendy’s is pursuing a steady, integrated model: synchronize new-unit growth with AI-enabled drive‑thru ordering, polish the digital boards, keep the app lively, and sell a menu that feels fresh. International markets are set to carry "about 70%" of the growth, while U.S. closures of "around 300" units starting in "late 2025" aim to strengthen the core. The capital plan includes "around $10 million" in Q2 for technology initiatives, and operational tools—from label printers to smart delivery scales—add quiet gains in accuracy. If the AI and digital stack continue to deliver on accuracy, labor efficiency, and average check growth—as leadership contends—the brand could build a more consistent guest experience across geographies. Project Fresh adds the welcomed flourish, with "Tendys" and "six" sauces giving the upgraded service more to serve. The lesson is simple and soothing: growth feels better when it moves at the pace of good hospitality. Pair speed with care, open restaurants where the welcome can scale, and let technology handle the friction so guests can enjoy the moment when their order is right, hot, and handed over with ease. Analysis: The integrated approach seeks to stabilize near-term results while laying groundwork for global scale, using AI-led consistency and selective pruning to strengthen unit economics.