Companies /Consumer Cyclical

Wendy`s Co - Class A

NASDAQ: WEN Restaurants
$8.19
â–² $0.37 (+4.74%) today
Markets open · 1:34pm ET

Q3 2025 Earnings

Reported Nov 7, 2025, 7:14am ET · SEC source
$0.24
Beat +22.95%
EPS · est. $0.20
$549.5M
Beat +2.81%
Revenue · est. $534.5M
−11.3%
Trailing market
WEN vs S&P since report
5 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−8%−4%0+4%Nov 7Nov 7report 7:14am ETearnings+0.4%−5.4%
−8%−4%0+4%Nov 7Nov 7earnings+0.4%−5.4%
WEN −5.4%S&P 500 +0.4%
−8%−4%0+4%Nov 7Nov 7report 7:14am ETearnings+0.2%−5.4%
−8%−4%0+4%Nov 7Nov 7earnings+0.2%−5.4%
WEN −5.4%NASDAQ +0.2%
−8%−4%0Nov 6Nov 14report 7:14am ETearnings+0.9%−8.5%
−8%−4%0Nov 6Nov 14earnings+0.9%−8.5%
WEN −8.5%S&P 500 +0.9%
−8%−4%0Nov 6Nov 14report 7:14am ETearnings+0.6%−8.5%
−8%−4%0Nov 6Nov 14earnings+0.6%−8.5%
WEN −8.5%NASDAQ +0.6%
+1.59%
Day of report
−4.79%
Next session
−3.90%
One week
−8.81%
30 days

S&P 500 over the same 30 days: +2.47%.

Did WEN Beat Earnings? Q3 2025 Results

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.

Key Takeaways
  • 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

Forward Guidance & Outlook

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

Q3 2025 vs Q3 2024 · SEC filings Q3 2024 Q3 2025
$0$200.0M$400.0M$600.0M$566.7M$549.5MRevenue$94.7M$92.0MOperating Income$50.2M$44.3MNet Income
$0$200.0M$400.0M$600.0MRevenueOperating IncomeNet Income

WEN Revenue by Segment

Company-Operated Restaurant Sales$233.2M
Sales (Company-Operated Restaurants)
Franchise Royalty Revenue$127.8M
Advertising Funds Revenue$107.0M
Franchise Rental Income$57.3M
Franchise Fees$24.2M

Figures from SEC filings and company reports. Not investment advice.