In the next four quarters, analysts expect Wendy’s (WEN) to post revenue of $1.22 billion, which represents 3.1% growth from the $1.26 billion seen in the last four quarters.
Wendy’s revenue growth is expected to be driven by positive SSSG (same-store sales growth) and the addition of new restaurants. The SSSG is expected to be driven by delivery service expansion, menu innovation, image activation, digital advancements to enhance customers’ experience, and various marketing and promotional offerings.
On December 1, 2017, Wendy’s announced a new partnership with DoorDash, which provides door-to-door delivery service for restaurants. Wendy’s expects to expand the delivery service to 48 markets and 2,500 of Wendy’s restaurants through this partnership. By the end of 3Q17, 39% of Wendy’s restaurants were image activated. Image activation contributed 0.7% of the North American SSSG seen in 3Q17. Image activation is expected to drive the company’s SSSG in the next four quarters as well.
With its 3Q17 earnings release, Wendy’s announced that it was on track to implement a mobile ordering facility in 75% of its restaurants by the end of 2017, and in the majority of its restaurants by the end of 1Q18. The company had rolled out 100 kiosks by the end of 3Q17 and announced that it would roll out 300 kiosks by the end of 2017.
After Wendy’s posted its 3Q17 earnings results, management lowered its 2017 SSSG guidance, to 2.0%–2.5% from 2.0%–3.0%. The company has also lowered its North American unit growth guidance for 2017, to 0.5%–1.0% from 1.0%.