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Stock Market Live July 1, 2026: S&P 500 (SPY) Lower as Investors Wait on the Fed and Fresh Economic Data
Wendy's

Wendy's (WEN) Q1 2026 Earnings

Reported May 8, 2026 at 7:05 AM ET · SEC Source

Q1 26 EPS

$0.12

BEAT +25.00%

Est. $0.10

Q1 26 Revenue

$540.6M

BEAT +4.38%

Est. $518.0M

vs S&P Since Q1 26

+21.2%

BEATING MARKET

WEN +22.6% vs S&P +1.3%

Market Reaction

Did WEN Beat Earnings? Q1 2026 Results

Wendy's delivered a headline beat in Q1 2026 that masked a company navigating genuine operational stress, with earnings per share of $0.12 clearing the $0.10 consensus by 25.00% and revenue of $540.64 million topping estimates by 4.38% on 3.3% year-o… Read more Wendy's delivered a headline beat in Q1 2026 that masked a company navigating genuine operational stress, with earnings per share of $0.12 clearing the $0.10 consensus by 25.00% and revenue of $540.64 million topping estimates by 4.38% on 3.3% year-over-year growth, yet the underlying picture was considerably more complicated. The revenue tailwind was largely mechanical, driven by higher franchise fees tied to the system optimization program and the reallocation of local advertising funds to national advertising, rather than by customer traffic, which fell sharply enough to push U.S. Same-restaurant sales down 7.8% and compress company-operated restaurant margins by 340 basis points to 11.4%. Net income dropped 42.1% to $22.71 million as commodity and labor inflation compounded the traffic headwinds, and adjusted EBITDA slid 10.6% to $111.31 million. Short interest hovering near 82% of the float reflects the skepticism surrounding the recovery timeline. Management reaffirmed its full-year 2026 outlook, targeting adjusted EBITDA of $460 to $480 million and free cash flow of $190 to $205 million, while pointing to menu innovation and a newly announced agreement to develop up to 1,000 restaurants in China as catalysts for the turnaround.

Key Takeaways

  • • U.S. same-restaurant sales declined 7.8%, driving overall systemwide sales decline
  • • International systemwide sales grew 6.0%
  • • U.S. Company-operated restaurant margin decreased 340 basis points to 11.4% due to traffic decline, commodity inflation, and labor rate inflation
  • • Higher franchise fees related to system optimization program
  • • Increase in advertising funds revenue from local funds reallocation to national advertising
  • • Higher company-operated restaurant sales from franchise restaurant acquisitions in Q3 2025

WEN Forward Guidance & Outlook

The company reaffirmed its full-year 2026 outlook: global systemwide sales growth of approximately flat; adjusted EBITDA of $460 to $480 million; adjusted earnings per share of $0.56 to $0.60; capital expenditures and franchise development fund investments of $120 to $130 million; and free cash flow of $190 to $205 million.

24/7 Wall St

WEN YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

WEN Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“We are taking decisive action to strengthen the Wendy's system and improve performance. 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.”

— Ken Cook, Q1 2026 Earnings Press Release

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