Wendy’s plans to open up to 1,000 restaurants across China over the next decade under a newly signed franchise agreement, marking the largest development deal in the company’s history and a major push into the Asia-Pacific market.
The announcement was made as part of Wendy’s first-quarter 2026 earnings release, where the company reported international systemwide sales growth of 6%, even as its U.S. business continued to face pressure from declining traffic and higher operating costs.
Interim CEO and CFO Ken Cook highlighted the China deal as a key milestone in the brand’s international growth strategy. “We could not ask for a better partner,” Cook said during the company’s earnings call, describing the franchisee as “a large restaurant operator with decades of experience in the country and a deep understanding of Chinese consumers.” Cook also said the agreement represents “an important milestone” in Wendy’s effort to expand its presence across Asia-Pacific markets.
According to the company, the restaurants will be developed over a 10-year period through an experienced local operator, although Wendy’s has not yet publicly disclosed the franchise partner’s identity.
The China expansion comes as Wendy’s continues executing its “Project Fresh” turnaround strategy under Cook’s leadership following the departure of former CEO Kirk Tanner in 2025. Cook, who has served as interim CEO since July 2025 while also retaining the CFO role, has been leading efforts to improve operations, franchise profitability and brand relevance in the U.S. market.
In the first quarter of 2026, Wendy’s global systemwide sales fell 5.5%, while U.S. same-restaurant sales declined 7.8%. However, international markets remained a bright spot, supported by growth in markets including Mexico and the Philippines.
Cook said the company remains focused on balancing domestic turnaround initiatives with aggressive international expansion.
“We are in the early innings of our turnaround,” Cook told analysts during the earnings call. “Our focus on food, marketing, and operations is creating a flywheel that will compound over time.”
Founded in 1969 by Dave Thomas, Wendy’s operates more than 7,000 restaurants globally. The company has increasingly prioritized franchise-led international development, with management previously stating that a majority of future unit growth is expected to come from outside the United States.
