The Wendy’s Company (WEN) Q2 2026 earnings summary

Executive summary

• Leadership acknowledged underperformance, with traffic declines, eroded value proposition, and franchisee pressure, and expressed optimism for a turnaround based on brand strengths and a focused strategy.

• New CEO and CFO/Chief Strategy Officer, both with turnaround experience, are implementing a plan focused on menu quality, branding, operations, digital experience, and restaurant growth.

• Revenues for Q2 2026 were $571 million, up 1.7% year-over-year, but global systemwide sales declined 6.5%, driven by a 7.0%-8.2% decrease in the U.S. and a 2.3%-3.4% decrease internationally.

• Net income for Q2 2026 was $32.6 million, down from $55.1 million in Q2 2025, with adjusted EBITDA at $124.1 million.

• Systemwide restaurant count decreased by 71 net restaurants in Q2 2026.

Financial highlights

• U.S. same-restaurant sales declined 7.0%-8.2% year-over-year; international same-restaurant sales fell 2.3%.

• Adjusted revenue was $443.2 million, down 1.4% from the prior year, mainly due to lower franchise royalty revenue and rental income.

• Adjusted EPS was $0.18, down 37.9% year-over-year; basic and diluted EPS for Q2 2026 was $0.17.

• Operating profit for Q2 2026 was $79.3 million, down 24% year-over-year.

• Free cash flow for the first half was $120.3 million, up 9.9% year-over-year, driven by lower cash taxes and capex.

Outlook and guidance

• Full-year 2026 financial outlook was withdrawn as leadership reassesses business opportunities and turnaround planning.

• Traffic in July remained consistent with Q2 trends; continued traffic headwinds expected to prevent year-over-year sales growth in Q3 and Q4.

• Ongoing margin and EBITDA pressure expected in the second half from sales deleverage, commodity inflation (5%-6%), and increased G&A.

• Management anticipates continued labor and commodity inflation for the remainder of 2026 and plans to manage costs through selective menu price increases and operational efficiencies.