Wendy’s (NASDAQ:WEN) Announces Earnings Results

Wendy’s (NASDAQ:WEN) issued its quarterly earnings results on Friday. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.02, FiscalAI reports. The company had revenue of $439.60 million for the quarter, compared to the consensus estimate of $537.11 million. Wendy’s had a return on equity of 125.74% and a net margin of 8.43%.The firm’s revenue was down 5.5% compared to the same quarter last year. During the same period last year, the business posted $0.25 earnings per share. Wendy’s updated its FY 2026 guidance to 0.560-0.600 EPS.

Here are the key takeaways from Wendy’s’ conference call:

• U.S. sales weakness: Global system-wide sales fell 8.3% in Q4 and U.S. same-restaurant sales were down ~11.3%, driven by reduced marketing, a tough SpongeBob comp, weather headwinds, and a delayed chicken launch.
• Project Fresh turnaround: Management launched a four‑pillar plan (brand revitalization, operational excellence, system optimization, disciplined capital allocation) and expects 2026 to be a rebuilding year with roughly flat global system‑wide sales and sequential improvement in U.S. comps.
• International growth remains a bright spot: International system‑wide sales grew 6.2% in Q4 and 8.1% for 2025 with record net unit growth (121 net new restaurants) and a similar international development cadence expected in 2026.
• Operational improvements are showing results—U.S. company‑operated restaurants outperformed the broader system by ~310–410 bps in 2025, and the company is scaling enhanced training, field support, and restaurant tech to franchisees to lift customer satisfaction and execution.
• Guidance and capital priorities: 2026 targets include Adjusted EBITDA of $460–480M, Adj. EPS $0.56–0.60, FCF $190–205M, a maintained $0.14 quarterly dividend, continued share repurchases, but net leverage remains elevated (~4.8x) and system optimization is expected to reduce EBITDA by ~$15–20M.

Wendy’s Price Performance

NASDAQ:WEN opened at $7.48 on Friday. The company has a debt-to-equity ratio of 26.89, a quick ratio of 0.80 and a current ratio of 0.81. The company has a 50-day moving average of $8.19 and a 200-day moving average of $8.94. Wendy’s has a 52 week low of $7.08 and a 52 week high of $16.20. The company has a market capitalization of $1.42 billion, a price-to-earnings ratio of 8.80, a PEG ratio of 1.45 and a beta of 0.38.

Wendy’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, March 16th. Stockholders of record on Monday, March 2nd will be paid a $0.14 dividend. The ex-dividend date is Monday, March 2nd. This represents a $0.56 dividend on an annualized basis and a dividend yield of 7.5%. Wendy’s’s dividend payout ratio is currently 65.88%.

Analyst Ratings Changes

A number of brokerages have recently commented on WEN. Truist Financial cut their price target on Wendy’s from $12.00 to $11.00 and set a “buy” rating for the company in a report on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Wendy’s in a research report on Wednesday, January 21st. Mizuho cut their target price on shares of Wendy’s from $8.00 to $7.00 and set an “underperform” rating for the company in a research note on Friday, January 9th. Sanford C. Bernstein set a $9.00 price target on shares of Wendy’s in a research report on Wednesday, October 22nd. Finally, TD Cowen dropped their price objective on shares of Wendy’s from $11.00 to $9.00 and set a “hold” rating on the stock in a report on Monday, November 10th. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have given a Hold rating and five have given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $10.20.

Key Headlines Impacting Wendy’s

Here are the key news stories impacting Wendy’s this week:

• Positive Sentiment: Q4 EPS beat — Wendy’s reported $0.16 EPS vs. consensus $0.14, showing some margin resilience despite traffic weakness. Wendy’s (WEN) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: International strength — global systemwide sales grew internationally (Q4 and full-year), providing a growth pocket outside the U.S. weakness. THE WENDY’S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND PROVIDES 2026 OUTLOOK
• Positive Sentiment: Short-term traffic promotions — deals (e.g., $1 burgers) and limited-time items could support near-term comp trends if they drive visits. Wendy’s celebrating ‘singles’ with $1 burgers on Feb. 15. See deal
• Neutral Sentiment: Macro backdrop steady — CPI came in roughly as expected today, suggesting inflation dynamics aren’t an immediate upside/downside surprise for consumer spending. CPI Increased in Line With Expectations
• Neutral Sentiment: Analyst/earnings context available — full earnings call transcript and multiple analyst takes provide detail but deliver mixed views on whether Wendy’s is a value opportunity or a value trap. The Wendy’s Company (WEN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Planned U.S. closures — management said it will close roughly 5–6% of U.S. restaurants in H1 2026 (about 240–360 locations), signaling structural problems in core U.S. markets. Wendy’s says as many as 350 US locations will close in the first half of this year
• Negative Sentiment: Weak FY26 guidance — Wendy’s set FY2026 EPS at $0.56–$0.60 vs. consensus ~$0.86, a sizable cut that pressures valuation and near‑term upside. THE WENDY’S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND PROVIDES 2026 OUTLOOK
• Negative Sentiment: Top-line weakness — Q4 revenue and systemwide sales declined (U.S. comps fell), and coverage notes the company’s U.S. struggles are expected to persist into FY26. Wendy’s Sales Dented by Persistent U.S. Struggles
• Negative Sentiment: Market reaction context — shares hit a 52-week low amid a highly shorted profile, amplifying downside risk if U.S. trends don’t stabilize. Highly Shorted Stock Wendy’s Hits 52-Week Low On Weak Outlook

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in WEN. M&T Bank Corp boosted its holdings in Wendy’s by 8.4% during the second quarter. M&T Bank Corp now owns 16,987 shares of the restaurant operator’s stock valued at $194,000 after purchasing an additional 1,310 shares in the last quarter. Brown Financial Advisors boosted its stake in Wendy’s by 4.7% in the second quarter. Brown Financial Advisors now owns 29,908 shares of the restaurant operator’s stock worth $342,000 after purchasing an additional 1,339 shares in the last quarter. Bank of Nova Scotia boosted its stake in Wendy’s by 3.4% in the third quarter. Bank of Nova Scotia now owns 40,993 shares of the restaurant operator’s stock worth $375,000 after purchasing an additional 1,343 shares in the last quarter. Ausdal Financial Partners Inc. grew its holdings in shares of Wendy’s by 14.2% during the third quarter. Ausdal Financial Partners Inc. now owns 14,162 shares of the restaurant operator’s stock worth $130,000 after purchasing an additional 1,765 shares during the last quarter. Finally, Bank of Montreal Can increased its stake in shares of Wendy’s by 1.6% in the fourth quarter. Bank of Montreal Can now owns 123,919 shares of the restaurant operator’s stock valued at $1,032,000 after buying an additional 1,991 shares in the last quarter. Institutional investors own 85.96% of the company’s stock.

Wendy’s Company Profile

The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy’s expanded rapidly through both company-owned and franchised outlets.