Wendy's (WEN) Q3 2025 Earnings
How Did WEN Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +2.47%.
Did WEN Beat Earnings? Q3 2025 Results
Yes. Wendy's reported Q3 2025 earnings of $0.24 a share on Nov 7, 2025, beating the $0.20 consensus estimate by 23.0%. Revenue was $549.5M against a $534.5M estimate.
Wendy's delivered a stronger-than-expected quarter in Q3 2025, with adjusted earnings per share of $0.24 beating the $0.20 consensus estimate by 22.95%, even as revenue slipped 3.0% year-over-year to $549.52 million, which still cleared Wall Street's $534.51 million estimate by 2.81%. The headline beat masked a genuinely difficult domestic backdrop: U.S. same-restaurant sales fell 4.7%, dragging global systemwide sales down 2.6% to $3.54 billion, while Company-operated restaurant margins contracted sharply to 13.1% from 15.6% a year ago under pressure from commodity inflation and labor cost increases. Adjusted EBITDA rose 2.1% to $138.04 million, helped by reduced advertising spend and lower G&A expenses. Interim CEO Ken Cook unveiled "Project Fresh," a turnaround plan aimed at brand revitalization and operational improvement, even as reports suggest the company may close hundreds of underperforming U.S. locations. Wendy's reaffirmed its 2025 adjusted EPS guidance of $0.82 to $0.89 and raised its free cash flow outlook to $195 to $210 million, up $35 million at the midpoint.
- International systemwide sales grew 8.6% with growth across all regions
- Company-operated restaurants outperformed the U.S. system by 4% on comparable sales
- Decrease in Company's funding of incremental advertising spend
- Lower general and administrative expense driven by lower share-based compensation
- U.S. same-restaurant sales declined 4.7%
- U.S. Company-operated restaurant margin decreased to 13.1% from 15.6% due to commodity inflation, traffic decline, and labor rate inflation
“Third quarter results were in line with our expectations, reflecting continued strength in our international business with 8.6% systemwide sales growth, the addition of 54 new restaurants globally and adjusted EBITDA growth.”
Wendy's CEO, on the earnings call
What Was Wendy's's Outlook in Q3 2025?
The company reaffirmed its 2025 guidance: global systemwide sales growth of (5.0)% to (3.0)%, adjusted EBITDA of $505 to $525 million, adjusted EPS of $0.82 to $0.89, and global net new unit growth of 2% to 3%. The company now expects capital expenditures and franchise development fund investments of $135 to $145 million (reduced from $165 to $175 million) and free cash flow of $195 to $210 million (increased from $160 to $175 million), representing a $35 million increase at the midpoint.
WEN YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $549.5M | $566.7M | −3.0% |
| Operating Income | $92.0M | $94.7M | −2.8% |
| Net Income | $44.3M | $50.2M | −11.9% |
WEN Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.