Wendy's Q1 2026 earnings beat estimates, U.S. same-store sales fall

Wendy's bushed Wall Street's first-quarter net and gross expectations connected Friday, but U.S. same-restaurant income continued to deteriorate, falling 7.8% arsenic the institution described itself arsenic being successful the aboriginal stages of a turnaround.

Adjusted net per stock came successful astatine $0.12 for the 4th ended March 29. Analysts had projected $0.10 per share, according to The Wall Street Journal. Revenue roseate 3.3% to $540.6 million. Analysts had forecast $518.03 million, according to The Wall Street Journal.

Premarket trading saw Wendy's shares emergence astir 4.3% pursuing the merchandise of the results.

Behind the top-line betterment were franchise interest increases connected to a system-optimization initiative, a assistance successful advertizing funds revenue, and a bump successful company-operated edifice income that reflected the franchise locations Wendy's brought in-house during the 3rd 4th of 2025, the institution said. Those gains were offset by little franchise royalty revenue.

Despite the gross growth, respective fiscal metrics worsened twelvemonth implicit year. Net income fell to $22.7 cardinal from $39.2 cardinal successful the aforesaid 4th a twelvemonth earlier. Adjusted EBITDA declined 10.6% to $111.3 million. At U.S. company-operated locations, the edifice borderline narrowed by 340 ground points to 11.4%, arsenic falling lawsuit traffic, rising commodity costs, and higher labour expenses each weighed connected the result, the institution said.

Global systemwide income fell 5.5% to $3.2 billion. International systemwide income provided a measurement of relief, increasing 6.0% successful the quarter. International same-restaurant income edged down conscionable 0.4%, compared with the 7.8% driblet successful the U.S.

A recently signed franchise statement calls for arsenic galore arsenic 1,000 Wendy's locations to beryllium built crossed China implicit a decade. Globally, the 4th ended with 50 nett caller edifice openings, portion the home marketplace absorbed a nett nonaccomplishment of 164 locations.

"While our archetypal 4th results bespeak a concern successful the aboriginal stages of a turnaround, we are making advancement to amended our U.S. concern and are assured successful the absorption we are heading," interim CEO Ken Cook said successful a statement.

For the afloat twelvemonth 2026, Wendy's near its guidance unchanged, calling for adjusted EPS successful the scope of $0.56 to $0.60, adjusted EBITDA betwixt $460 cardinal and $480 million, and planetary systemwide income astir successful enactment with the anterior year. The institution besides declared a quarterly dividend of $0.14 per share, payable June 15 to shareholders of grounds arsenic of June 1.

The results travel arsenic Wendy's rival Restaurant Brands International reported that its Burger King U.S. concern posted a 5.8% same-store income summation successful the archetypal quarter, with CEO Josh Kobza crediting a multi-year renovation and concern programme for outperforming expectations.