Wendy’s (NASDAQ:WEN – Get Free Report) posted its earnings results on Friday. The restaurant operator reported $0.12 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.10 by $0.02, FiscalAI reports. Wendy’s had a net margin of 7.58% and a return on equity of 145.93%. The business had revenue of $432.30 million for the quarter, compared to analyst estimates of $518.03 million. During the same period in the prior year, the company posted $0.20 EPS. The company’s revenue for the quarter was up 3.3% on a year-over-year basis. 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 Price Performance
Shares of NASDAQ WEN traded up $0.36 during trading on Friday, hitting $7.31. The company had a trading volume of 17,944,248 shares, compared to its average volume of 8,536,241. The stock has a fifty day simple moving average of $7.05 and a two-hundred day simple moving average of $7.87. Wendy’s has a fifty-two week low of $6.37 and a fifty-two week high of $12.52. The firm has a market capitalization of $1.39 billion, a price-to-earnings ratio of 8.59, a price-to-earnings-growth ratio of 1.89 and a beta of 0.35. The company has a quick ratio of 1.74, a current ratio of 1.76 and a debt-to-equity ratio of 28.77.
Wendy’s Dividend Announcement
Analyst Ratings Changes
Several research firms have recently issued reports on WEN. Truist Financial lowered their target price on shares of Wendy’s from $11.00 to $10.00 and set a “buy” rating on the stock in a research note on Tuesday, February 17th. Royal Bank Of Canada dropped their target price on shares of Wendy’s from $8.50 to $8.00 and set a “sector perform” rating on the stock in a research report on Tuesday, February 17th. BMO Capital Markets dropped their target price on shares of Wendy’s from $11.00 to $9.00 and set a “market perform” rating on the stock in a research report on Tuesday, February 17th. Stephens dropped their target price on shares of Wendy’s from $9.00 to $8.00 and set an “equal weight” rating on the stock in a research report on Friday, February 13th. Finally, Morgan Stanley reiterated an “underweight” rating and issued a $7.00 target price on shares of Wendy’s in a research report on Monday, February 16th. Four research analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and five have issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Reduce” and an average price target of $8.46.
Read Our Latest Stock Report on WEN
Key Headlines Impacting Wendy’s
Here are the key news stories impacting Wendy’s this week:
- Positive Sentiment: Q1 EPS beat consensus: Wendy’s reported $0.12 EPS vs. ~$0.10 expected, which helped calm near-term investor concerns about profitability. Wendy’s (WEN) Beats Q1 Earnings and Revenue Estimates
- Positive Sentiment: Major China expansion: Wendy’s entered a franchise agreement to pursue up to 1,000 restaurants in China over the next decade, which supports long‑term international growth prospects. Wendy’s plans to open 1,000 restaurants in China over the next decade
- Positive Sentiment: Management reaffirmed FY2026 outlook and reported positive cash/profit metrics (adjusted EBITDA and net income) that support confidence in the turnaround. THE WENDY’S COMPANY REPORTS FIRST QUARTER 2026 RESULTS
- Neutral Sentiment: FY2026 EPS guidance set to $0.560–0.600 versus consensus ~0.570 — essentially in line with street expectations, leaving limited surprise in full‑year guidance.
- Neutral Sentiment: Mixed sales picture: global systemwide sales declined 5.5% but international systemwide sales grew ~6%, signaling geographic divergence in recovery. THE WENDY’S COMPANY REPORTS FIRST QUARTER 2026 RESULTS
- Neutral Sentiment: Broader macro: stronger-than-expected U.S. jobs report may support consumer spending, a modest positive tailwind for casual‑dining demand. BLS Jobs: +115K, Double Expectations
- Negative Sentiment: Revenue missed expectations materially: Q1 revenue of $432.3M fell short of consensus (~$518M), highlighting demand weakness and raising near‑term growth concerns. Listen to Conference Call / Earnings Details
- Negative Sentiment: U.S. footprint shrinking: reports indicate Wendy’s is closing 200–300 U.S. restaurants as it restructures — a sign of short‑term market share loss but also part of management’s cleanup strategy. Wendy’s to close 300 US restaurants
- Negative Sentiment: Margin pressure persists: beef and labor inflation remain headwinds that could compress margins even as sales efforts continue, constraining near‑term EPS upside. Wendy’s Turnaround on Track Despite Beef Costs, Consumer Uncertainty
Hedge Funds Weigh In On Wendy’s
Institutional investors and hedge funds have recently bought and sold shares of the business. Lido Advisors LLC boosted its position in Wendy’s by 20.1% during the fourth quarter. Lido Advisors LLC now owns 18,872 shares of the restaurant operator’s stock worth $170,000 after acquiring an additional 3,157 shares during the last quarter. &PARTNERS acquired a new position in Wendy’s during the fourth quarter worth about $155,000. United Capital Financial Advisors LLC boosted its position in Wendy’s by 50.0% during the third quarter. United Capital Financial Advisors LLC now owns 16,502 shares of the restaurant operator’s stock worth $151,000 after acquiring an additional 5,503 shares during the last quarter. iSAM Funds UK Ltd acquired a new position in Wendy’s during the third quarter worth about $144,000. Finally, NorthRock Partners LLC boosted its position in Wendy’s by 18.2% during the third quarter. NorthRock Partners LLC now owns 15,763 shares of the restaurant operator’s stock worth $144,000 after acquiring an additional 2,426 shares during the last quarter. 85.96% of the stock is currently owned by institutional investors and hedge funds.
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.
Recommended Stories
Receive News & Ratings for Wendy's Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Wendy's and related companies with MarketBeat.com's FREE daily email newsletter.
