Wendy’s sees UK turnover rise by nearly 50%

The US burger chain saw turnover grow from £21.2m in 2022 to £31.9m in 2023, while pre-tax profits fell slightly from £1.4m to £1.2m.

The rise in revenue comes after the group expanded its number of company-owned restaurants from six to 12 in 2022.

The group further added to its franchised estate in 2023 and by the year end had 12 company owned restaurants and 24 franchises in the UK.

As well as sales at company-owned restaurants, Wendy’s UK derives income from franchise revenues such as royalties and fees, and management fees for UK restaurant services.

Of the 2023 turnover, £19.6m came from restaurant sales (2022: £11.4m), while £11.4m came from management fees for UK restaurants (2022: £9.6m).

Earlier this year, the company said it expects to have between 45-50 restaurants in the UK by the end of the 2024, with long-term potential for an estate of 400 across the country.

Speaking on an earnings call in May, CFO Gunther Plosch said the Ohio-based fast food chain has signed up several franchisees and is making progress on profitability in the UK.

“The UK is a key strategic market for us and acts as a beachhead for the rest of Europe,” he said.

“Over time, we expect 400 restaurants. We’ll see how long that takes us but we believe it’s our fair share in that market.”