International systemwide sales grew 6.0%
Reported net income was $22.7 million and adjusted EBITDA was $111.3 million
Reported diluted earnings per share and adjusted earnings per share were $0.12
Entered into a franchise agreement to build up to 1,000 restaurants across China
Reaffirms full-year 2026 outlook
DUBLIN, Ohio, May 8, 2026 /PRNewswire/ -- The Wendy's Company (NASDAQ:WEN) today reported unaudited results for the first quarter ended March 29, 2026.
"We are taking decisive action to strengthen the Wendy's system and improve performance," said Ken Cook, Interim CEO. "During the first quarter, we introduced a new Biggie platform, upgraded our premium hamburgers, and launched new chicken sandwiches. Additionally, our focus on operational excellence is driving improvement in order accuracy and key customer satisfaction metrics. While our first quarter results reflect a business in the early stages of a turnaround, we are making progress to improve our U.S. business and are confident in the direction we are heading."
"Our international business continues to deliver strong results, with systemwide sales up 6.0% in the quarter supported by further expansion in key growth markets. We're also excited to announce today a new franchise agreement with an experienced restaurant operator to build up to 1,000 restaurants across China over the next 10 years and look forward to bringing Wendy's to more fans around the globe."
"These actions are strengthening our foundation and positioning Wendy's to regain momentum and deliver sustainable growth and long-term value creation."
Operational Highlights
2025
2026
First Quarter
US
Intl
Global
US
Intl
Global
Systemwide Sales Growth (1) (2)
(2.6) %
8.9 %
(1.1) %
(7.3) %
6.0 %
(5.5) %
Same-Restaurant Sales Growth (1) (2)
(2.8) %
2.3 %
(2.1) %
(7.8) %
(0.4) %
(6.8) %
Systemwide Sales (In US$ Millions) (2) (3)
$2,916.1
$473.2
$3,389.3
$2,702.9
$518.0
$3,220.9
Restaurant Openings - Total / Net
28 / 25
46 / 43
74 / 68
23 / (164)
27 / 18
50 / (146)
Quarter End Restaurant Count
5,958
1,350
7,308
5,805
1,446
7,251
(1) Systemwide sales growth and same-restaurant sales growth are calculated on a constant currency basis and include sales by both Company-operated and franchise restaurants.
(2) Excludes Argentina.
(3) Systemwide sales include sales at both Company-operated and franchise restaurants.
Financial Highlights
First Quarter
2025
2026
B / (W)
($ In Millions Except Per Share Amounts)
(Unaudited)
Total Revenues
$ 523.5
$ 540.6
3.3 %
Adjusted Revenues (1)
$ 423.1
$ 432.3
2.2 %
U.S. Company-Operated Restaurant Margin
14.8 %
11.4 %
(340)bps
General and Administrative Expense
$ 68.2
$ 72.8
(6.7) %
Operating Profit
$ 83.1
$ 64.9
(21.9) %
Net Income
$ 39.2
$ 22.7
(42.1) %
Adjusted EBITDA (1)
$ 124.5
$ 111.3
(10.6) %
Reported Diluted Earnings Per Share
$ 0.19
$ 0.12
(36.8) %
Adjusted Earnings Per Share (1)
$ 0.20
$ 0.12
(40.0) %
Cash Flow from Operations
$ 85.4
$ 59.4
(30.4) %
Free Cash Flow (1)
$ 68.0
$ 36.5
(46.3) %
(1) See "Disclosure Regarding Non-GAAP Financial Measures" and the reconciliation tables that accompany this release for a discussion and reconciliation of the non-GAAP financial measures included in this release.
First Quarter Financial Highlights
Systemwide SalesGlobal systemwide sales decreased, driven largely by lower U.S. same-restaurant sales, partially offset by contributions from new restaurant openings.
Total RevenuesThe increase in total reported revenues resulted primarily from an increase in franchise fees related to the system optimization program, higher advertising funds revenue due to local advertising funds being reallocated to U.S. national advertising, and higher Company-operated restaurant sales reflecting the Company's acquisition of franchise-operated restaurants during the third quarter of 2025. These were partially offset by lower franchise royalty revenue.
U.S. Company-Operated Restaurant MarginThe decrease in U.S. Company-operated restaurant margin was primarily due to a decline in traffic, commodity inflation, and labor rate inflation. These were partially offset by an increase in average check and labor efficiencies.
General and Administrative ExpenseThe increase in general and administrative expense was primarily due to an increase in employee compensation and benefits and higher professional fees.
Operating ProfitThe decrease in operating profit was primarily due to a decrease in U.S. Company-operated restaurant margin, lower franchisee royalty revenue, an increase in general and administrative expense, and an increase in depreciation and amortization expense. These were partially offset by higher net franchisee fees.
Net IncomeThe decrease in reported net income was primarily due to a decrease in operating profit and an increase in interest expense, partially offset by lower income taxes.
Adjusted EBITDAThe decrease in adjusted EBITDA was primarily driven by a decrease in U.S. Company-operated restaurant margin, lower franchise royalty revenue, and an increase in general and administrative expense. These were partially offset by higher net franchise fees.
Adjusted Earnings Per ShareThe decrease in adjusted earnings per share was primarily driven by a decrease in adjusted EBITDA, an increase in depreciation, and an increase in interest expense.
Free Cash FlowThe decrease in free cash flow was driven by a decrease in net cash provided by operating activities, partially offset by a decrease in capital expenditures and investments associated with the Company's franchise development fund.
Company Declares Quarterly DividendThe Company announced today the declaration of its regular quarterly cash dividend of $0.14 per share. The dividend is payable on June 15, 2026, to shareholders of record as of June 1, 2026.
Share RepurchasesThe Company did not repurchase any shares in the first quarter of 2026 and has not repurchased any shares in the second quarter of 2026 as of the date of this release. As of May 1, approximately $35.0 million remained available under the Company's existing share repurchase authorization that expires in February 2027.
2026 Outlook
During 2026 the Company Continues to Expect:
Global systemwide sales growth
Approximately Flat
Adjusted EBITDA
$460 to $480 million
Adjusted earnings per share
$0.56 to $0.60
Capital expenditures and franchise development fund investments
$120 to $130 million
Free cash flow
$190 to $205 million
Conference Call and Webcast Scheduled for 8:30 a.m. Today, May 8The Company will host a conference call on Friday, May 8 at 8:30 a.m. ET, with a simultaneous webcast from the Company's Investor Relations website at www.irwendys.com. The related presentation materials are now available on the Company's Investor Relations website. The live conference call will be available by telephone at (844) 200-6205 for domestic callers and (929) 526-1599 for international callers, both using event ID 280384. A replay of the webcast will be available on the Company's Investor Relations website.
About Wendy'sThe Wendy's Company (NASDAQ:WEN) and Wendy's® franchisees employ hundreds of thousands of people across more than 7,000 restaurants worldwide. Founded in 1969, Wendy's is committed to the promise of Fresh Famous Food, Made Right, For You, delivered to customers through its craveable menu including made-to-order square hamburgers using fresh beef*, and fan favorites like the Spicy Chicken Sandwich and nuggets, Baconator®, and the Frosty® dessert. Wendy's supports the Dave Thomas Foundation for Adoption®, established by its founder, which seeks to dramatically increase the number of adoptions of children waiting in North America's foster care system. Learn more about Wendy's at www.wendys.com. For details on franchising, visit www.wendys.com/franchising. Connect with Wendy's on X, Instagram and Facebook.
*Fresh beef available in the contiguous U.S. and Alaska, as well as Canada, Mexico, Puerto Rico, the UK, and other select international markets.
Investor Contact:Aaron BroholmHead of Investor Relations(614) 764-3345; [email protected]
Media Contact:Heidi SchauerVice President, Communications, Public Affairs & Customer Care(614) 764-3368; [email protected]
Forward-Looking StatementsThis release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "may," "believes," "plans," "expects," "anticipates," "intends," "estimate," "goal," "upcoming," "outlook," "guidance" or the negation thereof, or similar expressions. In addition, all statements that address future operating, financial or business performance, strategies or initiatives, future efficiencies or savings, anticipated costs or charges, future capitalization, anticipated impacts of recent or pending investments or transactions and statements expressing general views about future results or brand health are forward-looking statements within the meaning of the Reform Act. Forward-looking statements are based on the Company's expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. For all such forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. The Company's actual results, performance and achievements may differ materially from any future results, performance or achievements expressed or implied by the Company's forward-looking statements.
Many important factors could affect the Company's future results and cause those results to differ materially from those expressed in or implied by the Company's forward-looking statements. Such factors include, but are not limited to, the following: (1) the impact of competition or poor customer experiences at Wendy's restaurants; (2) adverse economic conditions or volatility or disruptions, including in regions with a high concentration of Wendy's restaurants; (3) changes in discretionary consumer spending and consumer tastes and preferences; (4) conditions beyond the Company's control, such as adverse weather conditions, natural disasters, hostilities, social unrest, health epidemics or pandemics or other catastrophic events; (5) impacts to the Company's corporate reputation or the value and perception of the Company's brand; (6) the effectiveness of the Company's marketing and advertising programs and new product development; (7) the Company's ability to manage the impact of social or digital media; (8) the Company's ability to protect its intellectual property; (9) food safety events or health concerns involving the Company's products; (10) the Company's ability to successfully implement important strategic initiatives, including its Project Fresh plan, effectively managing or maintaining growth and market share across its dayparts or executing strategic transactions; (11) the Company's ability to grow its business through new restaurant development; (12) the Company's ability to effectively manage the acquisition and disposition of restaurants and other restaurant activity; (13) risks associated with leasing and owning significant amounts of real estate, including environmental matters; (14) risks associated with the Company's international operations, including the ability to execute its international growth strategy; (15) changes in commodity and other operating costs; (16) shortages or interruptions in the supply or distribution of the Company's products and other risks associated with the Company's independent supply chain purchasing co-op; (17) the impact of increased labor costs or labor shortages; (18) the continued succession and retention of key personnel and the effectiveness of the Company's leadership and organizational structure; (19) risks associated with the Company's digital commerce strategy, platforms and technologies, including its ability to adapt to changes in industry trends and consumer preferences; (20) the Company's and its franchisees' dependence on computer systems and information technology, including risks associated with the failure or interruption of its systems or technology or the occurrence of cybersecurity incidents or deficiencies; (21) ...
