The Wendy’s Company (WEN) investor relations material

Executive summary

• Global systemwide sales declined 5.5% year-over-year to $3.22 billion, mainly due to a 7.3%–7.8% drop in U.S. sales, while international systemwide sales grew 6.0%.

• Net income fell 42% to $22.7 million, and adjusted EBITDA dropped 10.6% to $111.3 million.

• Project Fresh turnaround strategy launched, focusing on brand revitalization, operational excellence, and system optimization.

• Signed a major franchise agreement to open up to 1,000 restaurants in China over the next 10 years.

• Digital sales rose to 23.6% of global systemwide sales, up from 20.3% in Q1 2025.

Financial highlights

• Total revenues increased 3.3% year-over-year to $540.6 million, driven by higher franchise fees and advertising revenue.

• Adjusted EBITDA was $111.3 million, down $13.2 million year-over-year.

• Adjusted EPS was $0.12, down from $0.19–$0.20 in Q1 2025.

• Free cash flow was $36.5 million, down from $68.0 million year-over-year.

• U.S. company-operated restaurant margin declined to 11.4%, down 340 basis points year-over-year.

Outlook and guidance

• Full-year 2026 outlook reaffirmed: global systemwide sales expected to be flat, with mid-single digit decline in Q2 and growth in H2.

• Adjusted EBITDA guidance: $460–$480 million; adjusted EPS: $0.56–$0.60.

• Capital expenditures and franchise development fund investments projected at $120–$130 million; free cash flow $190–$205 million.

• U.S. company-operated restaurant margin expected at 13% ±50 bps, with 4% labor and commodity inflation.

• No share repurchases planned for 2026; $35 million remains authorized through February 2027.