Wendy’s Company (NASDAQ: WEN) reported fourth‑quarter 2025 results on February 13, 2026, with revenue of $543.0 million, up 5.5% from $514.0 million a year earlier and slightly above the consensus estimate of $537.55 million. Adjusted earnings per share were $0.16, beating the consensus of $0.15 by $0.01 or 6.7%. The Q4 adjusted EPS decline of 36% from the $0.25 reported in Q4 2024 reflects the company’s ongoing challenges in its core U.S. market.
The full‑year 2025 revenue totaled $2.18 billion, down 3.1% from $2.25 billion in 2024. Full‑year adjusted EPS rose to $0.88, compared with $1.00 or $0.95 in 2024, indicating a modest improvement in profitability despite lower top‑line growth. The company’s full‑year adjusted EPS beat the consensus estimate of $0.85, but the guidance for 2026 falls short of analyst expectations.
U.S. same‑restaurant sales fell 11.3% in Q4 2025, and company‑operated restaurant operating margins contracted 3.8 percentage points to 12.7% from 16.5% in Q4 2024. The margin compression is driven by lower traffic, commodity inflation, and higher labor costs, all of which have eroded profitability in the U.S. segment.
International sales grew 8.1% for the year, driven by strong performance in Canada, Mexico and Australia. The international segment’s growth offsets the U.S. weakness and supports the company’s overall revenue trajectory.
Management reiterated its Project Fresh turnaround plan and confirmed 2026 guidance, projecting global systemwide sales to remain flat and adjusted EBITDA of $460–$480 million. Adjusted EPS guidance for 2026 is $0.56–$0.60, well below the analyst consensus of $0.85, and the company has characterized 2026 as “a rebuilding year.” The guidance signals management’s cautious outlook on near‑term demand and continued margin pressure.
"Our fourth quarter performance was in line with our expectations, reflecting the challenges we anticipated. We are making progress against our Project Fresh turnaround plan in the U.S. and continue to deliver strong growth internationally," said interim CEO Ken Cook. "We're encouraged by the operational improvements we've driven at U.S. Company‑operated restaurants and our marketing calendar for 2026, which includes new everyday Biggie value offerings and upcoming innovation across our core menu." Project Fresh is about reigniting the energy and distinctiveness that have always made Wendy’s special, while positioning the Company and our franchisees for profitable growth.
Investors reacted negatively to the 2026 guidance, which projects flat global sales and an adjusted EPS range that falls short of analyst expectations. The guidance reflects management’s view that the company’s turnaround will take longer than anticipated, with ongoing headwinds in the U.S. market and margin compression continuing to weigh on profitability.
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