WEN · The Wendy's Company

The Wendy's Company reported a challenging first quarter of 2026, with global systemwide sales declining 5.5% to $3.2 billion, driven primarily by a 7.8% drop in U.S. same-restaurant sales. International systemwide sales grew 6.0%, partially offsetting domestic weakness. Total revenues increased 3.3% to $540.6 million, benefiting from higher franchise fees related to the system optimization program and increased advertising funds revenue, but franchise royalty revenue declined. U.S. Company-operated restaurant margin contracted 340 basis points to 11.4%, pressured by lower traffic, commodity inflation, and labor rate inflation, partially offset by higher average check and labor efficiencies. Operating profit fell 21.9% to $64.9 million, and net income decreased 42.1% to $22.7 million. Adjusted EBITDA declined 10.6% to $111.3 million, and adjusted EPS dropped 40.0% to $0.12. The company declared a quarterly dividend of $0.14 per share and had $35 million remaining under its share repurchase authorization. Management highlighted early turnaround efforts, including a new Biggie platform, upgraded burgers, and new chicken sandwiches, while noting progress in order accuracy and customer satisfaction. The company also announced a franchise agreement to build up to 1,000 restaurants in China over the next 10 years. For full-year 2026, Wendy's reaffirmed its outlook for approximately flat global systemwide sales growth, adjusted EBITDA of $460-$480 million, adjusted EPS of $0.56-$0.60, capital expenditures of $120-$130 million, and free cash flow of $190-$205 million.