Wendy’s (NASDAQ:WEN – Get Free Report) posted its quarterly earnings results on Friday. The restaurant operator reported $0.12 EPS for the quarter, beating analysts’ consensus estimates of $0.10 by $0.02, FiscalAI reports. The business had revenue of $432.30 million for the quarter, compared to analysts’ expectations of $518.03 million. Wendy’s had a return on equity of 145.93% and a net margin of 7.58%.The business’s quarterly revenue was up 3.3% on a year-over-year basis. During the same period last year, the firm earned $0.20 earnings per share. Wendy’s updated its FY 2026 guidance to 0.560-0.600 EPS.
Here are the key takeaways from Wendy’s’ conference call:
- International expansion: Signed a franchise agreement to develop up to 1,000 restaurants in China over 10 years, while international system-wide sales grew 6% and the new “Future Fresh” restaurant design is being rolled out to drive growth.
- Operational proof points: Company-operated restaurants that fully implemented Project Fresh initiatives outperformed the U.S. system by ~310 basis points, with accuracy and cleanliness programs (85% rollout of menu label printers and a White Glove program) showing measurable improvements in customer satisfaction.
- Brand and menu revitalization: Launched the Biggie Deals value platform ($4/$6/$8), upgraded buns/condiments and rolled out a major Spicy Chicken Sandwich revamp, plus a refreshed marketing approach and new media agency to drive awareness and traffic.
- Near-term U.S. performance and financials: Q1 results were pressured—global system-wide sales down 5.5% (U.S. same-restaurant sales -7.8%), adjusted EBITDA $111.3M and adjusted EPS $0.12, free cash flow fell and net leverage was 4.9x; management maintained its full-year 2026 outlook but expects a mid-single-digit Q2 decline with recovery in the back half.
Wendy’s Trading Up 5.0%
Shares of WEN stock opened at $7.30 on Friday. Wendy’s has a 12-month low of $6.37 and a 12-month high of $12.52. The company has a current ratio of 1.76, a quick ratio of 1.74 and a debt-to-equity ratio of 28.77. The stock’s 50-day moving average price is $7.05 and its 200-day moving average price is $7.87. The stock has a market capitalization of $1.39 billion, a price-to-earnings ratio of 8.59, a price-to-earnings-growth ratio of 1.97 and a beta of 0.35.
Wendy’s Announces Dividend
Analysts Set New Price Targets
A number of research firms have commented on WEN. Truist Financial decreased their price target on Wendy’s from $11.00 to $10.00 and set a “buy” rating on the stock in a report on Tuesday, February 17th. BMO Capital Markets decreased their price target on Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a report on Tuesday, February 17th. Wall Street Zen cut Wendy’s from a “hold” rating to a “sell” rating in a report on Saturday, February 21st. Mizuho set a $6.00 price target on Wendy’s in a report on Friday, May 1st. Finally, Evercore set a $8.00 price target on Wendy’s in a report on Tuesday, February 17th. Four analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and five have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and an average target price of $8.46.
View Our Latest Analysis on WEN
Institutional Investors Weigh In On Wendy’s
Several large investors have recently made changes to their positions in the company. Virtu Financial LLC bought a new stake in shares of Wendy’s in the fourth quarter worth about $314,000. Invesco Ltd. increased its holdings in shares of Wendy’s by 22.5% in the fourth quarter. Invesco Ltd. now owns 1,083,789 shares of the restaurant operator’s stock worth $9,028,000 after purchasing an additional 199,053 shares during the last quarter. Mercer Global Advisors Inc. ADV grew its position in Wendy’s by 20.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 98,911 shares of the restaurant operator’s stock worth $824,000 after acquiring an additional 16,725 shares in the last quarter. State of Tennessee Department of Treasury purchased a new position in Wendy’s in the fourth quarter worth about $279,000. Finally, EP Wealth Advisors LLC purchased a new position in Wendy’s in the fourth quarter worth about $135,000. 85.96% of the stock is owned by institutional investors.
More Wendy’s News
Here are the key news stories impacting Wendy’s this week:
- Positive Sentiment: Wendy’s reported Q1 adjusted EPS of $0.12, topping expectations, and reaffirmed its FY 2026 guidance, which helped support the stock. The Wendy’s Company Reports First Quarter 2026 Results
- Positive Sentiment: The company also announced a franchise agreement to build up to 1,000 restaurants in China over the next decade, adding a potential long-term growth catalyst. Wendy’s plans to open 1,000 restaurants in China over the next decade
- Positive Sentiment: The board declared a quarterly dividend of $0.14 per share, reinforcing the stock’s appeal for income-focused investors.
- Neutral Sentiment: Wendy’s revenue came in below Wall Street estimates, even though sales rose year over year, showing the turnaround is still incomplete. Wendy’s earnings report
- Neutral Sentiment: Management said it remains focused on improving performance, while investors continue to monitor inflation in beef and labor costs and the impact on margins. Wendy’s Gears Up for Q1 Earnings: What’s in the Offing for the Stock?
- Negative Sentiment: Comp sales and global systemwide sales fell, which raises concerns that the recovery in Wendy’s core business is still shaky. Wendy’s: No Recovery In Sight As Comp Sales Fall
- Negative Sentiment: Reports that Wendy’s may close hundreds of U.S. restaurants highlight the pressure it faces in a competitive fast-food market. Wendy’s to close 300 US restaurants as rivals gain ground
About Wendy’s
The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.
Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy’s expanded rapidly through both company-owned and franchised outlets.
Further Reading
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