Wendy’s is the third-largest US burger chain with 5,933 restaurants generating $2.1M average unit volume — but the brand is mid-turnaround with Q4 2025 same-store sales down 11.3% and 300+ closures announced. NNN cap rates currently span 6.00-7.00% depending on franchisee guarantor. The biggest variable: which operator runs your asset.

Pros:

• Third-largest US burger chain with 5,900+ restaurants
• International segment growing +6% SSS — bright spot in portfolio
• Top franchisees (Carlisle, Wendelta, Yellow Cab) carry stable credit
• 15-20 year primary terms with 8-10% bumps every 5 years

Cons:

• BB-/B1 speculative grade — non-investment grade brand credit
• Q4 2025 -11.3% SSS — worst quarter in over a decade
• 300+ US closures planned through 2026
• Meritage Hospitality (340 Wendy’s) -5% SSS in 2025 — closure pace-setter

The Wendy’s Company is the third-largest US burger chain with approximately 5,933 restaurants (Q3 2025) and roughly 1,200 international units. After a brutal 2025 — full-year same-store sales of -5.6% (the worst comp year in over a decade), Q4 alone of -11.3%, and the September 2025 exit of CEO Kirk Tanner after 18 months — the brand is mid-turnaround under interim CEO Ken Cook. Project Fresh has shifted strategy explicitly from new-unit growth to unit-economics improvement at existing stores. Approximately 200 net US closures occurred between September 2025 and May 2026, with another 300+ planned through 2026.

Wendy’s is approximately 95% franchisee-operated, and the franchisee operator is the dominant credit variable in NNN underwriting. The corporate guarantee covers only ~5% of properties. The largest single Wendy’s operator is Meritage Hospitality Group (OTCQX: MHGU) with 340 restaurants across 15 states plus 28 Twin Peaks and 24 Crisp & Green. Meritage reported FY2024 revenue of $577 million with $8.6 million in closure and impairment charges and same-store sales of -5%, materially worse than the Wendy’s system average. Meritage is not bankrupt, but it is the operator at the leading edge of Wendy’s closures and the largest single credit variable in Wendy’s NNN.

Other major Wendy’s franchisees carry stable profiles: Carlisle Corporation (~140 Wendy’s, diversified Tennessee-based operator that also runs Pilot Travel Centers and Logan’s Roadhouse), Wendelta (~100 Wendy’s, LA/MS-based long-time operator with conservative growth), and Yellow Cab Holdings (~80 Wendy’s, Texas-based and well-capitalized). The historical reminder is NPC International — once the largest Pizza Hut and Wendy’s franchisee — which filed Chapter 11 in 2020 with over $1 billion in debt. NPC’s bankruptcy remains a cautionary tale for any concentrated multi-brand operator.

Typical Wendy’s NNN leases run 15-20 year primary terms with 8-10% bumps every 5 years on 2,800-3,200 SF buildings sited on 0.8-1.2 acre pads. National average rent is $95,000-$150,000. System-average AUV in 2024 was $2.1 million; top operators above $2.5 million and weak stores under $1.5 million — the AUV spread is exactly what Project Fresh is targeting. International business (+6% Q3 2025 SSS) remains the bright spot while US results continue to disappoint.

For NNN landlords, the underwriting framework is operator-first: confirm the franchisee operator on every Wendy’s property, get the operator’s unit count and recent SSS trajectory, verify your specific store’s AUV against the $2.1 million system average, and check remodel status before transaction close. Cap rates currently span 6.00-7.00% on franchisee-guaranteed deals, with top operators (Carlisle, Wendelta, Yellow Cab) tighter at 5.75-6.25% on long-term ground leases. Corporate-guaranteed Wendy’s (only ~5% of system) trade tighter still but are rarely available.