Wendy’s (NASDAQ: WEN) shares rose by 6% on Friday morning after the Company shared details of launching a nationwide breakfast plan and its expansion into Europe at its investor day.
Wendy’s previously announced its breakfast plan expansion back in September and is expected to invest about USD 20 Million to support its U.S. stores in preparation, according to CNBC. Based on expansion, Wendy’s previously announced it has cut its fiscal 2019 adjusted earnings, expecting a decline anywhere from 3.5% to 6.5%.
Despite the impact on earnings, Wendy’s says it expects the breakfast menu will grow to approximately 10% of total daily sales.
Wendy’s was slammed before its decision to enter into the breakfast fast food business. Analysts voiced their doubt after Wendy’s attempted to expand into breakfast three times before.
“We really are building this program in a different way,” Wendy’s U.S. President Kurt Kane told investors.
According to a slideshow from Wendy’s investor day presentation, products such as a breakfast version of the classic Baconator, Maple Bacon Chicken Croissant, and Honey Butter Chicken Biscuit can be seen on the menu.
Wendy’s noted that the breakfast menu would not require any equipment expenses, but could cost franchisees up to USD 10,000.
Wendy’s also disclosed information regarding its global expansion into different international markets. Between 2020 and 2024, Wendy’s said it plans to grow its global restaurant count by 3% annually. A portion of that growth plan will stem from its European expansion that is expected to occur throughout the next 12 months to 18 months.
By 2024, Wendy’s anticipates having more than 1,500 international restaurants compared to its current count of 950 businesses. Wendy’s intends to initially enter into the United Kingdom market, making it the first European operation.
Wendy’s Chief Executive Officer Todd Penegor also reported some of its unreleased third quarter financial results at the investor day presentation.
Penegor mentioned that North American same-store sales growth of 4.4% for the quarter, primarily driven by the return of its spicy nuggets. Additionally, between 2021 to 2024, Wendy’s expects annual global sales to increase between 4% to 5%.
Wendy’s is expected to report its quarterly financial results on November 6.