The Wendy's Co

Latest Results (29.06.2026):

The Wendy's Co (first quarter 2026) reported a weak quarter as the systemwide business declined overall while international growth remained positive. Global systemwide sales were $3.221 billion, down 5.5% year-over-year, driven by a steep U.S. same-restaurant sales decline; reported net income was $22.7 million and adjusted EBITDA was $111.3 million. Management reaffirmed full-year 2026 guidance and announced a large China franchise agreement as part of its turnaround actions.

Top-line and comps

Global systemwide sales: $3.2209 billion (-5.5% vs. Q1 2025). International systemwide sales +6.0%; U.S. systemwide sales $2.7029 billion. Same-restaurant sales: U.S. -7.8%, International -0.4%, Global -6.8%.

Revenue and margins

Total reported revenues: $540.6 million (+3.3% YoY); adjusted revenues: $432.3 million (+2.2%). U.S. company-operated restaurant margin fell to 11.4% (down 340 bps), pressured by lower traffic, commodity and labor inflation.

Profitability

Reported net income: $22.7 million (down ~42% YoY). Adjusted EBITDA: $111.3 million (down 10.6% YoY). Reported diluted EPS and adjusted EPS: $0.12 each (vs. $0.19/$0.20 in Q1 2025).

Cash flow and balance sheet actions

Cash flow from operations: $59.4 million (down ~30%). Free cash flow: $36.5 million (down 46%). No share repurchases in Q1; ≈$35.0 million remains available under the repurchase authorization. Quarterly dividend declared: $0.14 per share (payable June 15, 2026).

Operational / strategic highlights

Management cited actions to strengthen the business including a new Biggie platform, upgraded premium hamburgers, new chicken sandwiches, and operational improvements (order accuracy and customer satisfaction). Announced a franchise agreement to build up to 1,000 restaurants in China over 10 years.

Drivers of the quarter

Quarterly weakness attributed to lower U.S. traffic, commodity and labor cost inflation, lower franchise royalty revenue and higher G&A and interest expense; some offset from new restaurant openings and higher franchise fees tied to system optimization.

Outlook

Company reaffirmed full-year 2026 targets: global systemwide sales approximately flat; adjusted EBITDA $460–$480 million; adjusted EPS $0.56–$0.60; capital expenditures and franchise development fund $120–$130 million; free cash flow $190–$205 million.