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Nelson Peltz's Trian Fund Management has no plans to make ‌a take-private bid for Wendy's (WEN.O) at this time, sources familiar with the matter told Reuters.

The move comes after the investment firm, a longtime Wendy's shareholder with around 16% of the fast food chain, was earlier this month reported by Reuters and others to ​be working on preparing a bid with the help of a consortium of investors, including Bugatti-backed BlueFive Capital ​and Flynn Group, a Wendy's franchisee.

News of a possible take-private sent the stock up ⁠14.7% on August 12, with further momentum since pushing it to around a nine-month high, leaving the company ​with a market value of around $1.7 billion.

On Wednesday Wendy's stock price tumbled more than 14% in after-hours trading in ​reaction to the Trian news.

Trian has concerns about Wendy's performance, including its recent trading price and valuation multiples, as well as its current strategic direction, said the sources who are familiar with the matter but cannot discuss Trian's thinking publicly.

This leaves Trian keeping ​an open mind about its future intentions, the sources added, declining to elaborate further.

A representative for Trian declined ​to comment.

Wendy's did not immediately respond to a request for comment.

SACRIFICING QUALITY
By pulling back on a possible takeover offer, Trian could ‌be offering ⁠new Wendy's Chief Executive Bob Wright time to execute a turnaround plan to address declining sales that cost it the No. 2 spot among big burger chains.

On Monday, Wright issued a rare corporate mea culpa, telling the Wall Street Journal that the chain sacrificed quality to trim costs. He also rolled out a five-point plan to ​revive prospects.

Earlier in August, Wendy's reported ​a drop in quarterly ⁠global sales, lower net income, higher costs and a drop in earnings per share, all of which prompted Wright to say the company is "clearly not performing at (its) potential."

Wright, ​who took the top job in May, is the fourth leader of Dublin, Ohio-headquartered ​Wendy's in ⁠the last three years.

Even as takeover speculation helped support the stock price, Wendy's shares still trade roughly 60% lower than they did five years ago.

Wendy's has had a nearly two-decade-long relationship with Trian, with Trian co-founder Peter May sitting on ⁠its ​board for 18 years. Last year, Bradley Peltz, one of Nelson Peltz's ​sons, joined the nine-person board. Nelson Peltz and another son, Matthew, had previously held board seats.

Trian also mulled taking Wendy's private in 2022 ​and then backed away from such plans in 2023.

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Shares of Wendy’s (NASDAQ:WEN | WEN Price Prediction) are up 5% to $8.88 in midday trading Wednesday after reports that Nelson Peltz’s Trian Fund Management is assembling a consortium to take the company private. Adding to the catalyst, the burger chain confirmed it is reviving its chief operating officer role as part of a broader management reset.

Wendy’s stock was up 5% year to date through Tuesday’s close, an unusual gain given deteriorating same-restaurant sales and a withdrawn 2026 outlook. The rally reflects deal speculation rather than a change in the operating story, with investors treating this as a special situation.

Peltz Consortium Report Fuels the Rally According to reports from the Financial Times and Reuters, Trian has assembled a group that could submit an offer for Wendy’s in the coming weeks. The consortium is expected to include Abu Dhabi-based BlueFive Capital and Flynn Group, one of the world’s largest restaurant franchise operators.

Flynn Group operates about 309 Wendy’s restaurants in the United States plus additional locations in Australia and New Zealand. Peltz personally owns a 16.2% stake in Wendy’s, and Trian holds 7.9%, which combined make the pair the company’s largest shareholder.

Trian disclosed in a February regulatory filing that it believed Wendy’s stock was “undervalued” and that it was reaching out to co-investors about strategic options, including taking the company private. Morgan Stanley cut its price target on Wendy’s stock to $5.5 from $7 two days before the Financial Times report, and Wendy’s shares jumped 12% following that report.

COO Role Revival and Management Reset Wendy’s will revive its chief operating officer role upon the August 31 departure of Pete Suerken, currently its U.S. president. Suerken will return as president and CEO of Quality Supply Chain Co-op, an independent purchasing cooperative in the Wendy’s system.

The COO position was eliminated more than six years ago and was last held by current CEO Bob Wright, who left Wendy’s in 2019. Wright later led Potbelly through a turnaround that culminated in its 2025 acquisition by RaceTrac. The filing said Wendy’s “is evaluating restructuring and reorganization efforts.”

The Operating Reality Behind the Bid U.S. same-restaurant sales at Wendy’s fell 7% in the second quarter, the sixth consecutive quarterly decline, while traffic dropped 12.5%. The company withdrew its 2026 financial outlook and cut its quarterly dividend to $0.07 a share.

Wendy’s closed 289 restaurants in the United States during the first half of 2026. Wright told analysts, “Traffic is down, our value proposition has slipped, and franchisee economics are under pressure. We can’t just do what we’ve always done better. We do have to innovate.” CFO Steve Cirulis added that “the real challenge for us has been that underlying traffic trend.”

Peer Restaurant Stocks in 2026 McDonald’s (NYSE:MCD) stock trades at $269.26 and is down 12% year to date through Tuesday’s close. The pullback reflects softer traffic across the fast-food burger category and gives McDonald’s a chance to reset expectations heading into the back half.

Restaurant Brands International (NYSE:QSR) stock trades at $77.52 and is up 14% year to date. Restaurant Brands is the only one of the three major listed burger operators in positive territory for the year, reflecting stronger execution at Burger King relative to peers.

Jack in the Box (NASDAQ:JACK) stock trades at $17.39 and is down 12% year to date. Jack in the Box remains in turnaround mode with an interim CEO and suspended capital returns, a reminder that Wendy’s is far from alone in the QSR reset cycle.

Sector ETF Context The Invesco Food & Beverage ETF (NYSEARCA:PBJ) trades at $48.76 and is up 8% year to date. It is a broad food and beverage fund rather than a restaurant-specific vehicle, so single-restaurant catalysts like the Wendy’s bid report get diluted.

Position sizing on PBJ should reflect the diluted exposure to any single name. A WEN takeover would move only a sliver of the basket.

What to Watch Shareholders can watch for a formal Trian consortium offer, which reporting suggests could arrive in the coming weeks. Any follow-up 8-K filing on the COO search or additional restructuring at Wendy’s could shape the next leg for the stock.

Commentary from Wright at the next quarterly update may set the tone for how quickly the operational turnaround catches up with the takeover narrative currently driving Wendy’s shares. A cautious approach and moderate position sizing make sense for anyone playing this as a special situation.

Contact [email protected] for any questions or corrections.

ToplineShares of Wendy's soared on Wednesday after the Financial Times reported Nelson Peltz's Trian Fund Management could lead a bid to take the restaurant chain private within a matter of weeks, a move that would hand the activist investor full control of a fast food giant with roughly 7,000 locations.

Signage for a Wendy's restaurant on April 21, 2026.

NurPhoto via Getty Images

Key FactsThe coalition led by Trian—which already owns a 16% stake in Wendy’s—is expected to include Flynn Group, one of Wendy's largest franchisees, and Abu Dhabi-based BlueFive Capital, FT reported on Wednesday.

Peltz first told the Securities and Exchange Commission in February he was evaluating ways to enhance shareholder value, including a plan to have Trian take "control of the company,” and said he thinks the company's stock, which has fallen significantly over the last year, is undervalued.

If Peltz moves forward this time, Trian would first submit the proposal via a regulatory filing and Wendy's independent directors would then decide whether to negotiate directly with Peltz's firm or run a broader auction process.

Wendy's told the Financial Times it "would thoroughly review any proposal submitted by Trian consistent with its fiduciary duties," adding the board "regularly reviews the company's strategic priorities" to maximize shareholder value.

Shares of Wendy's skyrocketed as much as 17% after the FT report was published, and were up more than 12.5% to $8.50 as of around 1:20 p.m. EDT.

Key backgroundPeltz has been involved with the Wendy’s brand since the 2000s. He served as chairman of The Wendy’s Company for more than 15 years, until September 2024, shortly after he trimmed his stake in the company by selling 2.6 million shares for $20.30 per share. Trian, which owned more than 19% of Wendy's shares back in 2022, also said then it was considering a potential deal to buy the fast-food giant. The next year, however, Peltz said his fund wouldn't pursue the takeover.

TANGENTWendy’s stock, which has lost nearly half its value over the last 12 months, rallied in June after a Reddit-fueled meme-stock frenzy, including a post calling to “save” the chain. Wendy’s trading volume hit $2.2 million in a matter of days in the week of June 22, up from $109,600 the entire week before. Enthusiasm surrounding Wendy’s was driven by posts on Reddit’s r/WallStreetBets forum—which heralded the GameStop and AMC meme stock frenzies years earlier—including one post arguing Wendy’s shares were more viable than SpaceX.

FORBES VALUATIONPeltz, an activist investor, has an estimated net worth of $1.6 billion. His firm has $8.5 billion in assets under management and has stakes in Bank of New York Mellon, DuPont and food conglomerate Mondelez International. Peltz has 10 children including Nicola Peltz, who is married to David and Victoria Beckham's eldest son, Brooklyn.

further readingForbesWendy’s Skyrockets As Reddit Traders Boost Shares—Is It The New Meme Stock?By Ty RoushForbesWendy’s Stock Surges After Billionaire Nelson Peltz Calls It UndervaluedBy Mary Whitfill Roeloffs

The Wendy's Company (NASDAQ:WEN)’s traded down more than 5% on Monday after Jefferies highlighted a weaker-than-expected second quarter same-store sales performance and said near-term trends could remain challenged as the company’s new leadership team works on a strategic plan.

Wendy’s reported US same-store sales declined 7% in the second quarter, missing Jefferies’ estimate of a 5.7% decline. Traffic fell 12.5%, with Jefferies pointing to reduced discounting, changes to breakfast hours and execution issues around quality, operations and marketing as factors weighing on performance.

Jefferies wrote that traffic in July was trending at a similar pace to the second quarter, indicating a weaker same-store sales trajectory than the 1.6% decline expected for the period. The firm expects pressure to continue through the fourth quarter as new management evaluates the business and prepares its strategic plan.

The strategic review is expected to focus on quality and value, the brand and marketing message, operating standards, digital initiatives and the company’s domestic restaurant footprint, Jefferies wrote.

Against that backdrop, Jefferies lowered its 2026 same-store sales estimate to a 5.2% decline from a 1.6% decline previously and now models 0.8% growth in 2027.

Wendy’s also withdrew its full-year guidance as management navigates continued sales and traffic pressure, commodity costs and potential investments to support the turnaround. Jefferies noted that beef inflation is expected to create additional company-operated restaurant margin pressure in the second half of the year, while G&A and franchisee support costs are also expected to increase.

Second quarter EBITDA came in at $124 million, slightly above Jefferies’ $121 million estimate, primarily due to lower-than-expected G&A. That benefit was partly offset by higher franchise support costs.

Jefferies lowered its 2026 adjusted EBITDA estimate to $455 million from $464 million and introduced a 2027 estimate of $450 million. Its EPS estimates were reduced to $0.54 and $0.57 for 2026 and 2027, respectively, from $0.57 and $0.64.

The firm maintained its Hold rating and $7.50 price target, with the target based on 8.5 times its 2027 EBITDA estimate. Jefferies wrote that expectations for Wendy’s are already low, while the planned strategic update next quarter could provide an initial catalyst for rebuilding investor confidence.

Jefferies highlighted CEO Ken Wright’s previous turnaround experience and history with Wendy’s, while noting that the turnaround will take time amid a challenging quick-service restaurant environment.

Wendy’s has lost its place as America’s runner-up to McDonald's, ending a six-year run as the second-largest burger chain, being surpassed by a resurgent Burger King.

Burger King reclaimed the No. 2 position as its U.S. turnaround gains momentum, with domestic same-store sales jumping 8.5% in the second quarter. Wendy’s, meanwhile, reported a 7% decline in U.S. same-store sales, marking its sixth consecutive quarter of contraction.

Wendy’s new CEO Bob Wright acknowledged the chain’s problems Friday, saying its competitive edge has weakened as customers have pulled back.

"Today we are clearly not performing at our potential," he wrote in a statement.

BURGER KING UNVEILS 'WHOPPER GUARANTEE' WITH FREE BURGER IF ORDER MISSES THE MARK

Wendy's rose to prominence in with his famous "Where's the Beef" ad campaign, but has lost its six-year hold on the No. 2 spot to McDonald's in the U.S. burger battle. (Photo by ZAMEK/VIEWpress)

"Our traffic, our value proposition and franchisee economics are not meeting our expectations. We have already begun taking action across five areas that we've identified to drive the turnaround: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth."

McDonald’s remains the dominant U.S. burger chain by a wide margin, leaving Burger King and Wendy’s fighting for a distant second place.

Wendy’s had surpassed Burger King roughly six years ago, helped by the successful nationwide rollout of its breakfast menu. But its hold on the No. 2 spot has eroded as Burger King poured money into improving restaurants, advertising and its core menu.

Restaurant Brands International, Burger King’s parent company, launched a broad U.S. turnaround effort in late 2022 after sluggish sales. The strategy has included restaurant remodels, increased marketing spending and changes intended to improve food quality and the customer experience.

BURGER KING'S IMPOSSIBLE WHOPPER TO HIT MENUS ACROSS THE US

The new Burger King Whopper is served in a box instead of a paper wrapper. (Burger King / Fox News)

More recently, Burger King has focused on its signature Whopper.

The chain revamped the burger earlier this year, making changes to its bun, packaging, mayonnaise and other elements. Burger King U.S. and Canada President Tom Curtis told The Wall Street Journal that the improvements are helping bring customers back.

"A lot of people are saying they’re coming back for the first time in a long time," Curtis said.

Burger King has also introduced a Whopper quality guarantee, pledging to remake an order if a customer is unhappy with it and provide another Whopper free on a future visit.

BURGER KING BRINGS BACK FAN FAVORITE FOR THE FIRST TIME IN 15 YEARS

A McDonald's Big Mac meal on June 8, 2024, in Bangkok, Thailand. (Lauren DeCicca/Getty Images / Getty Images)

"When we asked guests where we could do better, they gave us a lot of honest feedback, and now it's our responsibility to act on it," Curtis wrote in a statement in July. "We're not going to get everything right every single time, but we're committed to listening intently and improving every day.

"When guests choose us, they expect high-quality food, orders made the way they asked, and a team that's there when they need us. That's what these changes are about. We're raising the standard in our restaurants, so every Guest feels like they made the right choice."

Curtis said the chain believes it is taking market share from competitors, including potentially McDonald’s, and sees an opportunity to turn newly won customers into regulars.

"The next generation of burger lovers are being exposed to Burger King, and that means we’ve got runway ahead for years to come," Curtis told the Journal.

MCDONALD'S SAYS US SALES SLOWED AFTER VALUE DEAL PUSH FELL SHORT

The gains underscore a sharp reversal in fortunes for two longtime rivals that have wrestled with many of the same pressures in recent years.

Both companies navigated the COVID-19 pandemic, supply-chain disruptions and rising food and labor costs before confronting increasingly price-conscious consumers frustrated by years of restaurant menu inflation.

Burger King responded with its multiyear turnaround campaign. Wendy’s, by contrast, has faced leadership turnover just as restaurant traffic weakened and beef costs added pressure to its business.

Longtime Wendy’s CEO Todd Penegor retired in 2024 after eight years at the helm. Former PepsiCo executive Kirk Tanner succeeded him but left a little more than a year later to become CEO of Hershey.

WENDY'S, MCDONALD'S LAWSUIT CLAIMS BURGER ADS MISLEAD CONSUMERS ON PATTY SIZES

Ticker Security Last Change Change % MCD MCDONALD'S CORP. 274.48 -1.78 -0.64% QSR RESTAURANT BRANDS INTERNATIONAL INC. 73.89 +0.97 +1.33% WEN THE WENDY'S CO. 7.69 +0.30 +4.06% SHAK SHAKE SHACK 71.13 +0.89 +1.27% JACK JACK IN THE BOX INC. 17.58 +0.20 +1.15% YUM YUM! BRANDS INC. 150.76 -1.52 -1.00% Wendy’s CFO Ken Cook then served as interim chief executive before the company named Wright, the former CEO of Potbelly, to the permanent job in May.

"I returned to Wendy's because I believe we can fix our issues and I am excited to work with our team and our franchisees to drive a strong turnaround," Wright wrote in Friday's release of second quarter results.

He said Wendy’s recent problems have hurt customer traffic and put pressure on restaurant economics, an increasingly important issue for a largely franchised chain whose operators must absorb higher costs while competing aggressively for value-conscious diners.

Burger King’s improvement also comes as McDonald’s works through challenges in its own U.S. operation. McDonald’s has been revamping its burgers, testing new menu items and looking for ways to improve food quality, service and value.

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Still, Burger King’s move ahead of Wendy’s does not put it close to overtaking the Golden Arches.

McDonald’s accounted for about 48% of the U.S. burger market in 2024, according to Barclays data. Wendy’s held an estimated 11.4% share at the time, compared with about 10% for Burger King.

New leadership shares initial assessment while formulating comprehensive turnaround plan

Generated revenue of $571 million and global systemwide sales of approximately $3.4 billion

Generated net income of $32.6 million and adjusted EBITDA of $124.1 million

Company withdraws 2026 outlook and announces a reduction in its dividend to support the turnaround

, /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the second quarter ended June 28, 2026.

Key highlights for the quarter ended June 28, 2026, compared to June 29, 2025:

Global systemwide sales decreased 6.5%, driven by an 8.2% decline in the U.S., partially offset by 3.4% growth in international U.S. same-restaurant sales decreased 7.0% and international same-restaurant sales decreased 2.3% Net income was $32.6 million and adjusted EBITDA was $124.1 million Reported diluted earnings per share was $0.17 and adjusted earnings per share was $0.18 Net cash provided by operating activities was $160.0 million for the first half of the year and free cash flow was $120.3 million for the first half of the year "Wendy's is an iconic brand with exceptional assets. Today we are clearly not performing at our potential. I returned to Wendy's because I believe we can fix our issues and I am excited to work with our team and our franchisees to drive a strong turnaround," said Bob Wright, President and Chief Executive Officer of The Wendy's Company. "Our traffic, our value proposition and franchisee economics are not meeting our expectations. We have already begun taking action across five areas that we've identified to drive the turnaround: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth. We are updating our capital allocation to provide flexibility to support our turnaround across these actions and fund our plan for growth. Wendy's quality heritage provides a strong foundation for the turnaround and I am confident we can translate that equity into a proposition that's relevant to today's fast-evolving QSR landscape."

Operational Highlights

2025

2026

Second Quarter

US 

Intl 

Global  

US 

Intl 

Global  

Systemwide Sales Growth (1) (2)

(3.3) %

8.7 %

(1.8) %

(8.2) %

3.4 %

(6.5) %

Same-Restaurant Sales Growth (1) (2)

(3.6) %

1.8 %

(2.9) %

(7.0) %

(2.3) %

(6.3) %

Systemwide Sales (In US$ Millions) (2) (3)

$3,131.3

$528.9

$3,660.2

$2,875.8

$546.7

$3,422.5

Restaurant Openings - Total / Net

21 / 9

23 / 17

44 / 26

21 / (81)

27 / 10

48 / (71)

Quarter End Restaurant Count

5,967

1,367

7,334

5,724

1,456

7,180

Year-to-Date

 US  

Intl  

Global  

US 

Intl  

Global 

Systemwide Sales Growth (1) (2)

(3.0) %

8.8 %

(1.4) %

(7.7) %

4.6 %

(6.0) %

Same-Restaurant Sales Growth (1) (2)

(3.2) %

2.1 %

(2.5) %

(7.4) %

(1.4) %

(6.5) %

Systemwide Sales (In US$ Millions) (2) (3)

$6,047.4

$1,002.1

$7,049.5

$5,578.7

$1,064.7

$6,643.4

Restaurant Openings - Total / Net

49 / 34

69 / 60

118 / 94

44 / (245)

54 / 28

98 / (217)

(1) Systemwide sales growth and same-restaurant sales growth are calculated on a constant currency basis and include sales by both
Company-operated and franchise restaurants.

(2) Excludes Argentina.

(3) Systemwide sales include sales at both Company-operated and franchise restaurants.

Financial Highlights

Second Quarter

Year-to-Date

2025

2026

B / (W)  

2025

2026

 B / (W)  

($ In Millions Except Per Share Amounts)

(Unaudited)

Total Revenues

$  560.9

$  570.6

1.7 %

$ 1,084.4

$ 1,111.2

2.5 %

Adjusted Revenues (1)

$  449.6

$  443.2

(1.4) %

$    872.7

$   875.4

0.3 %

U.S. Company-Operated Restaurant Margin

16.2 %

13.8 %

(240)bps

15.6 %

12.7 %

(290)bps

General and Administrative Expense

$    59.5

$    66.2

(11.3) %

$   127.7

$  139.0

(8.8) %

Operating Profit

$  104.3

$    79.3

(24.0) %

$   187.4

$  144.2

(23.1) %

Net Income

$    55.1

$    32.6

(40.8) %

$     94.3

$    55.3

(41.4) %

Adjusted EBITDA (1)

$  146.6

$  124.1

(15.4) %

$   271.2

$  235.4

(13.2) %

Reported Diluted Earnings Per Share

$    0.29

$    0.17

(41.4) %

$     0.48

$    0.29

(39.6) %

Adjusted Earnings Per Share (1)

$    0.29

$    0.18

(37.9) %

$     0.49

$    0.30

(38.8) %

Cash Flow from Operations

$  146.0

$  160.0

9.6 %

Free Cash Flow (1)

$  109.5

$  120.3

9.9 %

(1) See "Disclosure Regarding Non-GAAP Financial Measures" and the reconciliation tables that accompany this release for a
discussion and reconciliation of the non-GAAP financial measures included in this release.

Second Quarter Financial Highlights

Systemwide Sales 
The decrease in global systemwide sales was primarily driven by lower U.S. same-restaurant sales and a decrease in the number of restaurants in the U.S.

Total Revenues
The increase in total reported revenues resulted primarily from higher advertising funds revenue due to local advertising funds being reallocated to U.S. national advertising and non-recurring vendor incentives, and higher Company-operated restaurant sales reflecting the Company's acquisition of franchise-operated restaurants during the third quarter of 2025. These were partially offset by lower franchise royalty revenue and franchise rental income.

U.S. Company-Operated Restaurant Margin
The decrease in U.S. Company-operated restaurant margin was primarily due to commodity inflation, a decline in traffic, and labor rate inflation. These were partially offset by an increase in average check and labor efficiencies.

General and Administrative Expense
The increase in general and administrative expense was primarily due to investments in professional services and employee compensation and benefits.

Operating Profit
The decrease in operating profit was primarily due to lower franchise royalty revenue, an increase in general and administrative expense, a decrease in U.S. Company-operated restaurant margin, and lower net franchise fees.

Net Income
The decrease in reported net income was primarily due to a decrease in operating profit and an increase in interest expense, partially offset by lower income taxes.

Adjusted EBITDA
The decrease in adjusted EBITDA was primarily driven by lower franchise royalty revenue, an increase in general and administrative expense, a decrease in U.S. Company-operated restaurant margin, and lower net franchise fees, primarily due to an increase in the provision for doubtful accounts.

Adjusted Earnings Per Share
The decrease in adjusted earnings per share was primarily driven by a decrease in adjusted EBITDA.

Year to Date Free Cash Flow
The increase in free cash flow was driven by a decrease in cash taxes, capital expenditures, and investments associated with the Company's franchise development fund, partially offset by lower net income adjusted for non-cash items.

Company Declares Quarterly Dividend
The Company announced today a reduction to its dividend to create additional flexibility to invest in initiatives in support of its turnaround. The updated annualized rate is $0.28 per share. The Company announced today the declaration of a quarterly cash dividend payment of $0.07 per share. The dividend is payable on September 15, 2026, to shareholders of record as of September 1, 2026.

Share Repurchases
The Company did not repurchase any shares in the second quarter of 2026 and has not repurchased any shares in the third quarter of 2026 as of the date of this release. As of July 31, approximately $35.0 million remained available under the Company's existing share repurchase authorization that expires in February 2027. 

2026 Outlook 
The Company is withdrawing its 2026 financial outlook. The Company's new leadership is taking the opportunity to fully assess the business opportunities and formulate a comprehensive turnaround plan, including the optimal deployment of capital.

Conference Call and Webcast
The Company will host a conference call today, Friday, August 7, at 8:30 a.m. ET, with a simultaneous webcast from the Company's Investor Relations website at www.irwendys.com. The related presentation materials are now available on the Company's Investor Relations website. The live conference call will be available by telephone at (833) 461-5787 for North American callers and (585) 542-9983 for international callers, both using event ID 791 958 064. A replay of the webcast will be available on the Company's Investor Relations website.

About Wendy's
The Wendy's Company (Nasdaq: WEN) and Wendy's® franchisees employ hundreds of thousands of people across more than 7,000 restaurants worldwide. Founded in 1969, Wendy's is committed to the promise of Fresh Famous Food, Made Right, For You, delivered to customers through its craveable menu including made-to-order square hamburgers using fresh beef*, and fan favorites like the Spicy Chicken Sandwich and nuggets, Baconator®, and the Frosty® dessert. Wendy's supports the Dave Thomas Foundation for Adoption®, established by its founder, which seeks to dramatically increase the number of adoptions of children waiting in North America's foster care system. Learn more about Wendy's at www.wendys.com. For details on franchising, visit www.wendys.com/franchising. Connect with Wendy's on X, Instagram and Facebook.

*Fresh beef available in the contiguous U.S. and Alaska, as well as Canada, Mexico, Puerto Rico, the UK, and other select international markets.

Investor Contact:
Aaron Broholm
Head of Investor Relations
(614) 764-3345; [email protected]

Media Contact:
Heidi Schauer
Vice President – Communications, Public Affairs & Customer Care
(614) 764-3368; [email protected] 

Forward-Looking Statements
This release contains certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "may," "believes," "plans," "expects," "anticipates," "intends," "estimate," "goal," "upcoming," "annualized," "outlook," "guidance" or the negation thereof, or similar expressions.  In addition, all statements that address future operating, financial or business performance, strategies or initiatives, future efficiencies or savings, anticipated costs or charges, future capitalization, anticipated impacts of recent or pending investments or transactions and statements expressing general views about future results or brand health are forward-looking statements within the meaning of the Reform Act. Forward-looking statements are based on the Company's expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. For all such forward-looking statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Reform Act. The Company's actual results, performance and achievements may differ materially from any future results, performance or achievements expressed or implied by the Company's forward-looking statements.

Many important factors could affect the Company's future results and cause those results to differ materially from those expressed in or implied by the Company's forward-looking statements.  Such factors include, but are not limited to, the following: (1) the impact of competition or poor customer experiences at Wendy's restaurants; (2) adverse economic conditions or volatility or disruptions, including in regions with a high concentration of Wendy's restaurants; (3) changes in discretionary consumer spending and consumer tastes and preferences; (4) conditions beyond the Company's control, such as adverse weather conditions, natural disasters, hostilities, social unrest, health epidemics or pandemics or other catastrophic events; (5) impacts to the Company's corporate reputation or the value and perception of the Company's brand; (6) the effectiveness of the Company's marketing and advertising programs and new product development; (7) the Company's ability to manage the impact of social or digital media; (8) the Company's ability to protect its intellectual property; (9) food safety events or health concerns involving the Company's products; (10) the Company's ability to successfully implement important strategic initiatives, effectively managing or maintaining growth and market share across its dayparts or executing strategic transactions; (11) the Company's ability to grow its business through new restaurant development; (12) the Company's ability to effectively manage the acquisition and disposition of restaurants and other restaurant activity; (13) risks associated with leasing and owning significant amounts of real estate, including environmental matters; (14) risks associated with the Company's international operations, including the ability to execute its international growth strategy; (15) changes in commodity and other operating costs; (16) shortages or interruptions in the supply or distribution of the Company's products and other risks associated with the Company's independent supply chain purchasing co-op; (17) the impact of increased labor costs or labor shortages; (18) the continued succession and retention of key personnel and the effectiveness of the Company's leadership and organizational structure; (19) risks associated with the Company's digital commerce strategy, platforms and technologies, including its ability to adapt to changes in industry trends and consumer preferences; (20) the Company's and its franchisees' dependence on computer systems and information technology, including risks associated with the failure or interruption of its systems or technology or the occurrence of cybersecurity incidents or deficiencies; (21) risks associated with the Company's securitized financing facility and other debt agreements, including compliance with operational and financial covenants, restrictions on its ability to raise additional capital, the impact of its overall debt levels and the Company's ability to generate sufficient cash flow to meet its debt service obligations and operate its business; (22) risks associated with the Company's capital allocation policy, including the amount and timing of equity and debt repurchases and dividend payments; (23) risks associated with complaints and litigation, compliance with legal and regulatory requirements and a focus on corporate responsibility issues; (24) risks associated with the availability and cost of insurance, the recognition of impairment or other charges, changes in tax rates or tax laws and fluctuations in foreign currency exchange rates; (25) risks associated with the Company's predominantly franchised business model; (26) Trian Fund Management, L.P. and certain of its affiliates filed a Schedule 13D/A with the Securities and Exchange Commission on February 18, 2026 indicating, among other things, that they intend to explore and evaluate the possibility of participating, alone or with third parties, in certain potential transactions with respect to the Company to enhance stockholder value; there can be no assurance that (i) any such potential transactions will occur or result in additional value for the Company's stockholders or (ii) that the exploration of potential transactions will not have an adverse impact on the Company's business; and (27) other risks and uncertainties cited in the Company's releases, public statements and/or filings with the Securities and Exchange Commission, including those identified in the "Risk Factors" sections of the Company's Forms 10-K and 10-Q.

All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that the Company currently deems immaterial may become material, and it is impossible for the Company to predict these events or how they may affect the Company.

The Company assumes no obligation to update any forward-looking statements after the date of this release as a result of new information, future events or developments, except as required by federal securities laws, although the Company may do so from time to time. The Company does not endorse any projections regarding future performance that may be made by third parties.

Disclosure Regarding Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including adjusted revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow.

The Company uses adjusted revenue, adjusted EBITDA and adjusted earnings per share as internal measures of business operating performance and as performance measures for benchmarking against the Company's peers and competitors. Adjusted EBITDA is also used by the Company in establishing performance goals for purposes of executive compensation. The Company believes its presentation of adjusted revenue, adjusted EBITDA and adjusted earnings per share provides a meaningful perspective of the underlying operating performance of our current business and enables investors to better understand and evaluate our historical and prospective operating performance. The Company believes these non-GAAP financial measures are important supplemental measures of operating performance because they eliminate items that vary from period to period without correlation to our core operating performance and highlight trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures. Due to the nature and/or size of the items being excluded, such items do not reflect future gains, losses, expenses or benefits and are not indicative of our future operating performance. The Company believes investors, analysts and other interested parties use adjusted revenue, adjusted EBITDA, and adjusted earnings per share in evaluating issuers, and the presentation of these measures facilitates a comparative assessment of the Company's operating performance in addition to the Company's performance based on GAAP results.

This release also includes disclosure regarding the Company's free cash flow. Free cash flow is a non-GAAP financial measure that is used by the Company as an internal measure of liquidity. The Company defines free cash flow as cash flows from operations minus (i) capital expenditures, (ii) expenditures related to the Company's franchise development fund and (iii) the net change in the restricted operating assets and liabilities of the advertising funds and any excess/deficit of advertising funds revenue over advertising funds expense included in net income, as reported under GAAP.  The impact of our advertising funds is excluded because the funds are used solely for advertising and are not available for the Company's working capital needs. The Company may also make additional adjustments for certain non-recurring or unusual items to the extent identified in the reconciliation tables that accompany this release. The Company believes free cash flow is an important liquidity measure for investors and other interested persons because it communicates how much cash flow is available for working capital needs or to be used for repurchasing shares, paying dividends, repaying or refinancing debt, financing possible acquisitions or investments or other uses of cash.

Adjusted revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow are not recognized terms under GAAP, and the Company's presentation of these non-GAAP financial measures does not replace the presentation of the Company's financial results in accordance with GAAP. Because all companies do not calculate adjusted revenue, adjusted EBITDA, adjusted earnings per share, and free cash flow (and similarly titled financial measures) in the same way, those measures as used by other companies may not be consistent with the way the Company calculates such measures. The non-GAAP financial measures included in this release should not be construed as substitutes for or better indicators of the Company's performance than the most directly comparable GAAP financial measures.  See the reconciliation tables that accompany this release for additional information regarding certain of the non-GAAP financial measures included herein.

Key Business Measures
The Company tracks its results of operations and manages its business using certain key business measures, including same-restaurant sales, systemwide sales and Company-operated restaurant margin, which are measures commonly used in the quick-service restaurant industry that are important to understanding Company performance.

Same-restaurant sales and systemwide sales each include sales by both Company-operated and franchise restaurants. The Company reports same-restaurant sales for new restaurants after they have been open for 15 continuous months and for reimaged restaurants as soon as they reopen. Restaurants temporarily closed for more than one fiscal week are excluded from same-restaurant sales.

Franchise restaurant sales are reported by our franchisees and represent their revenues from sales at franchised Wendy's restaurants. Sales by franchise restaurants are not recorded as Company revenues and are not included in the Company's consolidated financial statements. However, the Company's royalty revenues are computed as percentages of sales made by Wendy's franchisees and, as a result, sales by franchisees have a direct effect on the Company's royalty revenues and profitability.

Same-restaurant sales and systemwide sales exclude sales from Argentina due to the highly inflationary economy of that country.

The Company calculates same-restaurant sales and systemwide sales growth on a constant currency basis. Constant currency results exclude the impact of foreign currency translation and are derived by translating current year results at prior year average exchange rates. The Company believes excluding the impact of foreign currency translation provides better year over year comparability.

U.S. Company-operated restaurant margin is defined as sales from U.S. Company-operated restaurants less cost of sales divided by sales from U.S. Company-operated restaurants. Cost of sales includes food and paper, restaurant labor and occupancy, advertising and other operating costs. Cost of sales excludes certain costs that support restaurant operations that are not allocated to individual restaurants, which are included in "General and administrative." Cost of sales also excludes depreciation and amortization expense and impairment of long-lived assets. Therefore, as restaurant margin as presented excludes certain costs as described above, its usefulness may be limited and may not be comparable to other similarly titled measures of other companies in our industry.

The Wendy's Company and Subsidiaries

Condensed Consolidated Statements of Operations

Three and Six Month Periods Ended June 29, 2025 and June 28, 2026

(In Thousands Except Per Share Amounts)

(Unaudited)

Three Months Ended

Six Months Ended

2025

2026

2025

2026

Revenues:

Sales

$        232,853

$        240,016

$        452,363

$        465,513

Franchise royalty revenue

132,233

123,574

253,908

239,764

Franchise fees

24,067

26,197

47,540

57,902

Franchise rental income

60,411

53,363

118,865

112,267

Advertising funds revenue

111,365

127,421

211,725

235,762

560,929

570,571

1,084,401

1,111,208

Costs and expenses:

Cost of sales

196,521

207,275

384,690

408,324

Franchise support and other costs

17,069

22,566

33,665

44,557

Franchise rental expense

32,630

28,039

63,331

58,215

Advertising funds expense

111,374

127,879

212,902

236,494

General and administrative

59,485

66,161

127,689

139,004

Depreciation and amortization (exclusive of
   amortization of cloud computing arrangements
   shown separately below)

36,990

38,061

73,539

78,636

Amortization of cloud computing arrangements

4,056

4,577

8,223

9,339

System optimization gains, net

(387)

(667)

(297)

(2,292)

Reorganization and realignment costs

174

10

(518)

(152)

Impairment of long-lived assets

1,686

3,120

3,107

5,692

Other operating income, net

(2,929)

(5,734)

(9,316)

(10,814)

456,669

491,287

897,015

967,003

Operating profit

104,260

79,284

187,386

144,205

Interest expense, net

(30,945)

(33,850)

(62,422)

(67,956)

Investment loss, net

—

—

(1,718)

—

Other income, net

2,585

3,133

7,571

6,483

Income before income taxes

75,900

48,567

130,817

82,732

Provision for income taxes

(20,790)

(15,951)

(36,475)

(27,404)

Net income

$         55,110

$         32,616

$         94,342

$         55,328

Basic and diluted net income per share

$             .29

$             .17

$             .48

$             .29

Number of shares used to calculate basic income
   per share

191,949

190,426

196,296

190,359

Number of shares used to calculate diluted income
   per share

192,714

191,212

197,166

191,055

The Wendy's Company and Subsidiaries

Condensed Consolidated Balance Sheets

As of December 28, 2025 and June 28, 2026

(In Thousands Except Par Value)

(Unaudited)

December 28,
2025

June 28,
2026

ASSETS

Current assets:

Cash and cash equivalents

$        300,833

$        341,211

Restricted cash

39,207

38,786

Accounts and notes receivable, net

117,333

109,247

Inventories

7,387

7,036

Prepaid expenses and other current assets

55,412

78,922

Advertising funds restricted assets

97,867

102,897

Total current assets

618,039

678,099

Properties

937,795

895,598

Finance lease assets

312,844

319,808

Operating lease assets

642,589

582,630

Goodwill

774,088

773,119

Other intangible assets

1,170,671

1,147,228

Investments

25,227

22,988

Net investment in sales-type and direct financing leases

284,891

276,853

Other assets

190,417

187,893

Total assets

$     4,956,561

$     4,884,216

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt

$         29,750

$         29,750

Current portion of finance lease liabilities

26,673

27,538

Current portion of operating lease liabilities

51,119

51,953

Accounts payable

30,450

21,440

Accrued expenses and other current liabilities

116,655

124,713

Advertising funds restricted liabilities

96,454

102,078

Total current liabilities

351,101

357,472

Long-term debt

2,730,502

2,719,239

Long-term finance lease liabilities

646,715

647,637

Long-term operating lease liabilities

660,257

596,408

Deferred income taxes

287,753

289,268

Deferred franchise fees

87,956

81,671

Other liabilities

74,894

72,054

Total liabilities

4,839,178

4,763,749

Commitments and contingencies

Stockholders' equity:

Common stock, $0.10 par value; 1,500,000 shares authorized;

    470,424 shares issued; 190,324 and 190,639 shares outstanding, respectively

47,042

47,042

Additional paid-in capital

2,986,150

2,990,095

Retained earnings

435,124

437,099

Common stock held in treasury, at cost; 280,100 and 279,785 shares, respectively

(3,286,965)

(3,283,017)

Accumulated other comprehensive loss

(63,968)

(70,752)

Total stockholders' equity

117,383

120,467

Total liabilities and stockholders' equity

$     4,956,561

$     4,884,216

The Wendy's Company and Subsidiaries

Condensed Consolidated Statements of Cash Flows

Six Month Periods Ended June 29, 2025 and June 28, 2026

(In Thousands)

(Unaudited)

Six Months Ended

2025

2026

Cash flows from operating activities:

Net income

$         94,342

$         55,328

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization (exclusive of amortization of

cloud computing arrangements shown separately below)

73,539

78,636

Amortization of cloud computing arrangements

8,223

9,339

Share-based compensation

10,704

8,187

Impairment of long-lived assets

3,107

5,692

Deferred income tax

822

1,375

Non-cash rental expense, net

21,406

25,938

Change in operating lease liabilities

(24,482)

(25,247)

Net receipt of deferred vendor incentives

8,421

9,781

System optimization gains, net

(297)

(2,292)

Distributions received from joint ventures, net of equity in earnings

1,679

1,221

Long-term debt-related activities, net

3,744

3,612

Cloud computing arrangements expenditures

(9,335)

(10,241)

Changes in operating assets and liabilities and other, net

(45,865)

(1,372)

Net cash provided by operating activities

146,008

159,957

Cash flows from investing activities:

Capital expenditures

(39,050)

(31,439)

Franchise development fund

(16,518)

(10,998)

Dispositions

1,355

4,664

Notes receivable, net

1,949

—

Net cash used in investing activities

(52,264)

(37,773)

Cash flows from financing activities:

Proceeds from long-term debt

23,500

17,800

Repayments of long-term debt

(23,125)

(32,675)

Repayments of finance lease liabilities

(10,666)

(12,106)

Repurchases of common stock

(186,516)

(1,922)

Dividends

(76,243)

(53,316)

Proceeds from stock option exercises

1,717

—

Payments related to tax withholding for share-based compensation

(1,354)

(449)

Net cash used in financing activities

(272,687)

(82,668)

Net cash (used in) provided by operations before effect of exchange rate changes on cash

(178,943)

39,516

Effect of exchange rate changes on cash

5,437

(2,408)

Net (decrease) increase in cash, cash equivalents and restricted cash

(173,506)

37,108

Cash, cash equivalents and restricted cash at beginning of period

503,608

357,672

Cash, cash equivalents and restricted cash at end of period

$        330,102

$        394,780

The Wendy's Company and Subsidiaries

Reconciliations of Net Income to Adjusted EBITDA and Revenues to Adjusted Revenues

Three and Six Month Periods Ended June 29, 2025 and June 28, 2026

(In Thousands)

(Unaudited)

Three Months Ended

Six Months Ended

2025

2026

2025

2026

Net income

$         55,110

$         32,616

$         94,342

$         55,328

Provision for income taxes

20,790

15,951

36,475

27,404

Income before income taxes

75,900

48,567

130,817

82,732

Other income, net

(2,585)

(3,133)

(7,571)

(6,483)

Investment loss, net

—

—

1,718

—

Interest expense, net

30,945

33,850

62,422

67,956

Operating profit

104,260

79,284

187,386

144,205

Plus (less):

Advertising funds revenue

(111,365)

(127,421)

(211,725)

(235,762)

Advertising funds expense (a)

111,225

127,126

211,441

235,738

Depreciation and amortization (exclusive of
   amortization of cloud computing arrangements
   shown separately below)

36,990

38,061

73,539

78,636

Amortization of cloud computing arrangements

4,056

4,577

8,223

9,339

System optimization gains, net

(387)

(667)

(297)

(2,292)

Reorganization and realignment costs

174

10

(518)

(152)

Impairment of long-lived assets

1,686

3,120

3,107

5,692

Adjusted EBITDA

$        146,639

$        124,090

$       271,156

$        235,404

Revenues

$        560,929

$        570,571

$     1,084,401

$     1,111,208

Less:

Advertising funds revenue

(111,365)

(127,421)

(211,725)

(235,762)

Adjusted revenues

$        449,564

$        443,150

$       872,676

$        875,446

(a)

Excludes advertising funds expense of $183 and $342 for the three and six months ended June 29, 2025 related to the Company's funding of incremental advertising.  There was no funding of incremental advertising during the three and six months ended June 28, 2026.  In addition, excludes other international-related advertising surplus (deficit) of $34 and $(1,119) for the three and six months ended June 29, 2025, respectively, and $(753) and $(756) for the three and six months ended June 28, 2026, respectively.

The Wendy's Company and Subsidiaries

Reconciliation of Net Income and Diluted Earnings Per Share to

Adjusted Income and Adjusted Earnings Per Share

Three and Six Month Periods Ended June 29, 2025 and June 28, 2026

(In Thousands Except Per Share Amounts)

(Unaudited)

Three Months Ended

Six Months Ended

2025

2026

2025

2026

Net income

$         55,110

$         32,616

$         94,342

$         55,328

Plus (less):

Advertising funds revenue

(111,365)

(127,421)

(211,725)

(235,762)

Advertising funds expense (a)

111,225

127,126

211,441

235,738

System optimization gains, net

(387)

(667)

(297)

(2,292)

Reorganization and realignment costs

174

10

(518)

(152)

Impairment of long-lived assets

1,686

3,120

3,107

5,692

Total adjustments

1,333

2,168

2,008

3,224

Income tax impact on adjustments (b)

(371)

(588)

(580)

(780)

Total adjustments, net of income taxes

962

1,580

1,428

2,444

Adjusted income

$         56,072

$         34,196

$         95,770

$         57,772

Diluted earnings per share

$             .29

$             .17

$             .48

$             .29

Total adjustments per share, net of income taxes

—

.01

.01

.01

Adjusted earnings per share

$             .29

$             .18

$             .49

$             .30

(a)

Excludes advertising funds expense of $183 and $342 for the three and six months ended June 29, 2025 related to the Company's funding of incremental advertising.  There was no funding of incremental advertising during the three and six months ended June 28, 2026.  In addition, excludes other international-related advertising surplus (deficit) of $34 and $(1,119) for the three and six months ended June 29, 2025, respectively, and $(753) and $(756) for the three and six months ended June 28, 2026, respectively.

(b)

Adjustments relate to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.

The Wendy's Company and Subsidiaries

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

Six Month Periods Ended June 29, 2025 and June 28, 2026

(In Thousands)

(Unaudited)

Six Months Ended

2025

2026

Net cash provided by operating activities

$        146,008

$        159,957

Plus (less):

Capital expenditures

(39,050)

(31,439)

Franchise development fund

(16,518)

(10,998)

Advertising funds impact (a)

19,065

2,759

Free cash flow

$        109,505

$        120,279

(a)

Represents the net change in the restricted operating assets and liabilities of our advertising funds, which is included in "Changes in operating assets and liabilities and other, net," and the excess of advertising funds expense over advertising funds revenue, which is included in "Net income." 

SOURCE The Wendy's Company

Key Takeaways WEN maintained its 2026 adjusted EBITDA outlook of $460-$480 million despite a $13.2 million Q1 decline.Wendy's company-operated restaurants outperformed the broader U.S. system by 310 basis points in Q1.WEN expects global systemwide sales to return to growth in the second half as Project Fresh gains traction. The Wendy's Company (WEN - Free Report) is advancing its Project Fresh turnaround strategy amid persistent traffic pressure, intense value competition and elevated restaurant costs. U.S. same-restaurant sales declined 7.8% in the first quarter of 2026, primarily because of lower traffic, severe weather and adjustments to restaurant operating hours. Wendy’s nevertheless maintained its full-year outlook and expects sequential quarterly improvement, with global systemwide sales returning to growth in the second half as its turnaround initiatives gain traction.

Project Fresh focuses on strengthening brand relevance, restaurant execution and franchisee economics. Wendy’s introduced its Biggie Deals platform at $4, $6 and $8 price points to provide consistent everyday value while reinforcing product quality. The company also upgraded its core hamburger offerings, completed a significant enhancement to its spicy chicken sandwich and strengthened its innovation process. Customer-segmentation insights and a more audience-based marketing approach are expected to improve advertising effectiveness and strengthen customer engagement as the year progresses.

Early operational indicators support the strategy’s potential. Company-operated restaurants, which have fully implemented the operating playbook, outperformed the broader U.S. system by 310 basis points during the first quarter. Restaurants with the highest customer-satisfaction scores also generated same-restaurant sales that were approximately 400-500 basis points stronger than those of the lowest-performing locations. Wendy’s is expanding training, performance-management programs, order-accuracy technology and restaurant-cleanliness initiatives to extend these operational gains across the franchise system.

The path to EBITDA stabilization, however, remains dependent on a meaningful improvement in restaurant-level performance. First-quarter adjusted EBITDA declined $13.2 million year over year to $111.3 million, reflecting weaker company-operated restaurant margins, lower franchise royalty revenues and higher spending on brand revitalization, field support and international expansion. Wendy’s maintained its full-year adjusted EBITDA outlook of $460-$480 million and expects a U.S. company-operated restaurant margin of 13%, plus or minus 50 basis points. Lower-income consumer pressure, beef inflation and labor-rate increases remain headwinds, while system optimization is expected to create a $15-$20 million adjusted revenue headwind in 2026.

Wendy’s ability to generate EBITDA progress amid weak traffic will likely depend on whether Project Fresh can sustain stronger restaurant execution, improve customer engagement and translate better service levels into a sustained improvement in same-restaurant sales. These factors can support restaurant margins, franchise royalty revenues and operating leverage, making disciplined execution central to the company’s turnaround in a challenging QSR environment.

WEN’s Competitor LandscapeStarbucks Corporation (SBUX - Free Report) provides a relevant turnaround benchmark for Wendy’s because it is using service execution, menu innovation and loyalty engagement to rebuild transactions while navigating continued investment pressure. Under its Back to Starbucks strategy, the company is strengthening staffing, scheduling, technology and coffeehouse leadership through Green Apron Service, while its Grow reporting system is reinforcing more consistent store-level execution. Starbucks is also using a redesigned Rewards program, faster menu innovation and coffeehouse upgrades to increase engagement across morning and afternoon occasions. These efforts helped drive U.S. comparable sales growth of 7.1%, led by transaction growth of more than 4%, while consolidated operating margin expanded 110 basis points to 9.4% in the second quarter of fiscal 2026.

McDonald’s Corporation (MCD - Free Report) provides a closer operating comparison because it competes directly in the burger QSR category and is using value, marketing and menu innovation to protect traffic in a pressured consumer environment. Its “3 for 3” strategy combines McValue’s under-$3 items and meal deals across dayparts with culturally relevant campaigns and full-margin beef and chicken limited-time offerings. McDonald’s is also expanding its beverage platform through McCafé refreshers and crafted sodas. This approach supported U.S. comparable sales growth of 3.9%, favorable comparable sales and guest-count performance relative to close competitors and continued market-share strength during the first quarter of 2026.

Against this backdrop, Wendy’s faces a more demanding recovery than its larger peers. Starbucks is already translating stronger service execution and loyalty engagement into transaction-led growth, while McDonald’s is using its scale, value architecture and marketing reach to protect traffic and market share. Wendy’s competitive position will depend on whether Biggie Deals and its upgraded core menu can narrow the traffic gap while broader adoption of the Project Fresh operating playbook strengthens franchisee economics.

WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have gained 10.1% in the past three months against the industry’s 5% drop.

WEN Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.65, below the industry’s average of 3.28.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of WEN Stock
Image Source: Zacks Investment Research

WEN’s Zacks RankWEN stock currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Wendy's is using Project Fresh to enhance menu quality, operations and customer satisfaction.WEN is growing digital sales with AI-powered recommendations and expanding its international footprint.Management expects improving execution and easing cost pressures to support margin recovery. The Wendy's Company (WEN - Free Report) continues to face margin headwinds, but management believes its comprehensive turnaround strategy, dubbed Project Fresh, could gradually improve profitability as the year unfolds. While first-quarter performance remained under pressure, executives pointed to encouraging operational improvements that could support both sales and margins over time.

During the quarter, U.S. company-operated restaurant margin fell to 11.4%, reflecting softer customer traffic, elevated beef costs, investments in food quality upgrades and labor inflation. Adjusted EBITDA also declined as the company stepped up spending on marketing, field support and international expansion. Despite these challenges, Wendy’s maintained its full-year outlook, signaling confidence that conditions will improve in the second half.

Project Fresh is central to that recovery. Wendy’s is upgrading the core menu with improved hamburger buns, enhanced condiments and a revamped spicy chicken sandwich while strengthening value offerings through its Biggie Deals platform. At the same time, WEN is focusing on cleaner restaurants, better order accuracy and enhanced employee training, areas where company-operated restaurants have already outperformed the broader system. Management believes stronger execution will increase customer satisfaction, encourage repeat visits and ultimately lift restaurant economics.

Digital initiatives are also contributing to the turnaround. U.S. digital sales increased, supported by AI-powered recommendations in the mobile app and continued investments in the digital ordering experience. Meanwhile, Wendy’s is expanding internationally, highlighted by a franchise agreement to develop up to 1,000 restaurants in China, providing an additional long-term growth avenue.

Although commodity inflation, especially beef costs and cautious consumer spending remain near-term risks, Wendy’s expects improving sales trends, better operational execution and easing cost pressures later in the year to support margin recovery. If Project Fresh continues to gain traction, the company could gradually rebuild profitability while laying the foundation for sustainable long-term growth.

Peers Are Also Balancing Costs With Operational ImprovementsWendy's turnaround efforts mirror broader trends across the quick-service restaurant industry, where operators are working to protect margins while navigating inflation and cautious consumer spending. McDonald's (MCD - Free Report) continues to focus on affordability through value offerings while leveraging its vast digital ecosystem, loyalty program and operational efficiencies to offset higher labor and commodity costs. Its scale and strong franchise network have helped McDonald's preserve profitability despite a challenging demand environment.

Restaurant Brands International (QSR - Free Report) , the parent of Burger King, is pursuing a similar strategy through its "Reclaim the Flame" initiative. The company is investing in restaurant modernization, improved operations and targeted marketing to strengthen guest traffic and franchisee economics. Menu innovation and digital expansion also remain as Restaurant Brands International's key priorities for driving profitable growth.

Compared with these rivals, Wendy's differentiates itself through Project Fresh, which combines menu quality upgrades, operational improvements and system optimization. While margin pressure remains in the near term, the successful execution of these initiatives could help Wendy's narrow the profitability gap with larger competitors over time.

WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have dropped 31.6% in the past year compared with the industry’s 6.5% decline.

Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.64, below the industry’s average of 3.37.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of WEN Stock
Image Source: Zacks Investment Research

WEN’s Zacks RankWEN stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

Key Takeaways Wendy's China deal provides a long-term unit growth runway, targeting up to 1,000 restaurants over 10 years.The China push builds on 6% international sales growth and unit gains in the Philippines and Mexico.Wendy's China strategy combines its hamburger platform with localized menu innovation to drive adoption. The Wendy’s Company (WEN - Free Report) is sharpening its focus on international expansion as it works through a challenging U.S. turnaround. The company recently signed a franchise agreement to build up to 1,000 restaurants across China over the next 10 years, marking the largest development agreement in Wendy’s history. The deal gives the company a meaningful growth catalyst in one of the world’s most important restaurant markets.

The timing is important, as Wendy’s international business is showing relative strength. In the first quarter of 2026, international system-wide sales increased 6%, driven by net unit growth in key markets such as the Philippines and Mexico. The China agreement further advances the company’s “globally great, locally loved” strategy by pairing its core hamburger platform with locally inspired menu innovation for Chinese consumers.

The expansion also gives Wendy’s a potential counterbalance to ongoing domestic pressure. During the quarter, U.S. same-restaurant sales declined 7.8%, weighed down by lower traffic, severe weather and restaurant-hour optimization. The company expects sequential quarterly improvement through 2026 and maintains its outlook for approximately flat global system-wide sales, reflecting expectations that Project Fresh initiatives can gradually support better U.S. trends.

With relative strength in international markets, a major new China opportunity and early Project Fresh execution underway, Wendy’s appears better positioned to build a more balanced growth profile. While U.S. traffic remains a near-term overhang, successful execution in China could strengthen the company’s long-term expansion story and provide a broader growth platform.

How Does Wendy’s China Plan Stack Up Against MCD and SBUX?McDonald’s Corporation (MCD - Free Report) continues to benefit from its global scale, disciplined value strategy and strong menu-marketing execution. In the first quarter of 2026, the company grew global system-wide sales 6% in constant currency and global comparable sales 3.8%, while gaining market share in nearly all of its top 10 markets. In China, McDonald’s maintained its share and remains on track to open approximately 1,000 new restaurants this year, underscoring the scale Wendy’s will face as it builds its own China platform.

Meanwhile, Starbucks Corporation (SBUX - Free Report) continues to deepen its China strategy through a more localized partnership model. Starbucks China delivered transaction-led comparable sales growth for the fourth consecutive quarter, while the company completed its transaction with Boyu Capital after quarter-end. The partnership combines Starbucks’ global brand strength with Boyu’s local market expertise and is expected to support long-term growth. Starbucks also plans to expand from more than 1,000 county-level cities today to more than 1,500 over the next three years.

However, unlike McDonald’s and Starbucks, Wendy’s is still in the early stages of building scale in China. Its agreement to develop up to 1,000 restaurants over the next 10 years gives the company a sizable growth runway, but execution will be critical. Wendy’s fresh-beef positioning, locally inspired menu innovation and franchise-led expansion model could help the brand carve out a differentiated presence in the region.

WEN’s Price Performance, Valuation & EstimatesShares of Wendy’s have gained 21.1% in the past three months against the industry’s 1.7% drop.

WEN Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, WEN trades at a forward price-to-sales (P/S) multiple of 0.73, below the industry’s average of 3.34.

WEN’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for WEN’s 2026 earnings per share (EPS) implies a year-over-year decline of 34.1%. The EPS estimates for 2026 have remained unchanged in the past 30 days.

EPS Trend of WEN Stock
Image Source: Zacks Investment Research

WEN’s Zacks RankWEN stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wendy’s (NASDAQ:WEN | WEN Price Prediction) stock is up 6% to $7.74 in Friday midday trading, extending a remarkable rebound for the burger chain. The move puts the stock on track for what would be a third straight weekly gain after shares touched a roughly 12-year low on Monday.

The catalyst remains the viral “Save Wendy’s” campaign that swept r/WallStreetBets earlier this week, where posts like “Fixing Her: A Wendys (WEN) DD” drew hundreds of upvotes and lit up retail trader feeds. Reddit sentiment on Wendy’s peaked at a bullish score of 72 on June 25 before cooling.

Despite the rally, the stock remains down 34% over the past year. That collapse is exactly what created the unusual value and yield profile now drawing fundamental buyers alongside the meme crowd.

The “Save Wendy’s” Setup The meme army’s pitch is a classic short squeeze. Wendy’s stock short interest sits near 23% per S3 Partners and a record 26% per Yahoo/Koyfin data, giving forced buying real fuel. Reddit activity on r/WallStreetBets carried WEN stock higher all week.

Yet, the cooling has already started. By Friday, sentiment had dropped to neutral readings of 56 to 58, and a skeptical post titled “Wendy’s Meme Rally distracts from the bigger picture” began gaining traction. Mechanical short-covering can reverse swiftly once forced buyers are tapped out.

The Value Case for Wendy’s Per Yahoo Finance, Wendy’s stock trades at a trailing P/E ratio of 10.1x with a forward dividend yield of 7.65%. Unlike pure meme names, Wendy’s generates free cash flow and has a long history of paying dividends, with the most recent $0.14 quarterly payout distributed on June 15.

Insider conviction backs the value thesis. Wendy’s director and 10% owner Peter May bought 4,166 shares on April 3 at $7.14, with director Bradley Peltz purchasing 3,448 shares the same day at the same price. Nelson Peltz’s Trian Fund Management remains involved, and speculation continues about whether leadership changes could lead to a broader transaction.

Settled leadership adds to the turnaround narrative. Bob Wright is now Wendy’s permanent CEO and Steve Cirulis is the new CFO, both formerly at Potbelly, driving the “Project Fresh” turnaround plan.

The Bear Case Investors Can’t Ignore The high yield is partly a math artifact of a collapsing share price. Wendy’s stock is down 66% over five years, the textbook profile of a potential value or dividend trap if the turnaround stalls. Dividend sustainability becomes a fair question, not a forecast.

The fundamentals justify the skepticism. Wendy’s Q1 2026 U.S. same-restaurant sales fell 8%, a sharp deterioration, and net income dropped 42%. A low trailing P/E ratio on declining earnings can flatter the picture because forward earnings may look quite different.

Wall Street remains cautious on Wendy’s stock. The analyst consensus skews to hold, with 16 hold ratings against just 1 strong buy and 3 buys, and an average target of $7.79 roughly in line with current trading.

What to Watch The next real test for Wendy’s stock arrives with Q2 2026 earnings on August 14. Same-restaurant sales trends and early strategy commentary from Cirulis can shape whether the bounce holds.

For now, Wendy’s stock looks like more than a pure meme name, as the company has real cash flow and real insider buying activity. However, the depressed valuation reflects genuine traffic problems that have not yet turned. Investors interested in the turnaround thesis should consider keeping their WEN position sizes modest until Q2 results confirm whether Project Fresh is starting to bite.