As of January 2023, Wendy’s boasts over 6,800 restaurants spread across 30 countries and territories. The vast majority, over 5,400, reside within the United States and Canada.
In 2022, Wendy’s generated a total revenue of $5.2 billion. Net income came in at $366.3 million.
Wendy’s remains dedicated to global expansion. In 2023, the company aims to open roughly 400 new restaurants worldwide. Additionally, Wendy’s is actively investing in technological advancements like self-ordering kiosks and mobile payment systems.
Approximately 80% of Wendy’s restaurants are franchised. The remaining 20% are corporate-owned. Franchisees generally incur a franchise fee of $40,000 to $50,000, along with a royalty fee of 4% of gross sales.
Wendy’s can trace its roots back to 1969 when Dave Thomas opened his first restaurant in Columbus, Ohio. Initially known as “Kewpee Hamburger,” the store’s name changed to Wendy’s in 1972, inspired by Thomas’ daughter. The concept of fresh, never frozen beef and made-to-order burgers resonated with customers, leading to rapid expansion across the United States in the 1970s and 1980s. Innovative offerings like the square hamburger, baked potatoes, and Frosty desserts became synonymous with the brand. In 1982, Wendy’s adopted the franchise model, propelling its national and international presence. The company expanded across the globe, including markets like Canada, Mexico, the Philippines, Japan, and the United Kingdom. In 2008, the Wendy’s Company merged with Arby’s Restaurant Group, creating the Wendy’s/Arby’s Group and further solidifying its position in the fast-food market. Wendy’s continues to adapt to changing consumer preferences, introducing new initiatives such as mobile ordering, delivery services, and fresh salad options.
Investing in 7-Eleven’s ground lease and triple net (NNN) lease properties offer compelling reasons:
Wendy’s established brand and robust market presence translate to reliable income streams. Ground and NNN leases offer predictable cash flows over extended periods, providing investors with consistent revenue.
Wendy’s brand recognition and proven track record minimize vacancy and lease default risks. As a well-established tenant, Wendy’s offers investors peace of mind, knowing their property is in good hands.
Under ground and NNN leases, the tenant, in this case Wendy’s, handles property maintenance and expenses. This significantly reduces the workload for landlords, allowing them to focus on other aspects of their investment.
Long lease periods with built-in rent escalations provide predictable income and potential rental growth over time. This provides investors with long-term stability and the potential for increased returns.
