Wendy’s announced the addition of 62 new restaurants in Mexico, a move that will see the fast‑food chain expand its presence in the country’s fastest‑growing market. The first agreement, with AJ Group, will open 50 locations in Mexico City and the states of Mexico, Hidalgo and Morelos, with the first outlet slated to open later this year. The second agreement, with WS Pacific, will add 12 restaurants across Sinaloa and Durango, with the first opening targeted for year‑end.
The expansion comes on the heels of Wendy’s Q4 2025 results, in which the company reported adjusted earnings per share of $0.16—$0.02 above consensus—while revenue of $439.60 million fell short of the $537.11 million expected. U.S. same‑restaurant sales declined to their lowest level in roughly 20 years, and company‑operated restaurant margins contracted 380 basis points to 12.7%. The mixed results reflect a challenging domestic environment, even as international sales grew.
Management guided for 2026 adjusted EPS of $0.56–$0.60, a range well below the consensus estimate of $0.86. The lower guidance signals concerns about near‑term U.S. demand and the ongoing “Project Fresh” turnaround plan, which includes closing 5–6% of U.S. company‑operated restaurants in 2026. The guidance cut was the primary driver of a negative market reaction, even as the Mexico expansion was viewed as a positive tailwind.
The expansion strategy is part of Wendy’s broader effort to offset domestic headwinds. Mexico is a high‑potential growth market, and the company’s partnership with experienced franchise groups is intended to build a sustainable foundation for long‑term growth. “These agreements reflect the growing consumer demand for Wendy’s in Mexico and reinforce the brand’s accelerating presence across Latin America. By partnering with experienced franchise groups and continuing to invest in the right local resources, we have built a strong foundation for sustainable growth in the market. We look forward to bringing more Wendy’s restaurants to Mexican consumers who appreciate our fresh, high‑quality food and welcoming hospitality,” said Carlos Ribas, SVP, Managing Director – LAC Region.
“Our fourth quarter performance was in line with our expectations, reflecting the challenges we anticipated. We are making progress against our Project Fresh turnaround plan in the U.S. and continue to deliver strong growth internationally,” said Ken Cook, Interim CEO. “Wendy’s is winning globally because our brand, our food, and our business model deliver,” added E.J. Wunsch, President – International.
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