Wendy’s (NASDAQ:WEN) Posts Earnings Results, Beats Expectations By $0.02 EPS

Wendy’s (NASDAQ:WEN) announced its earnings results on Friday. The restaurant operator reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.02, FiscalAI reports. Wendy’s had a net margin of 8.43% and a return on equity of 125.74%. The business had revenue of $439.60 million during the quarter, compared to the consensus estimate of $537.11 million. During the same quarter in the prior year, the firm earned $0.25 earnings per share. The business’s quarterly revenue was down 5.5% compared to the same quarter last year. Wendy’s updated its FY 2026 guidance to 0.560-0.600 EPS.

Here are the key takeaways from Wendy’s’ conference call:

• U.S. sales weakness: Global system-wide sales fell 8.3% in Q4 and U.S. same-restaurant sales were down ~11.3%, driven by reduced marketing, a tough SpongeBob comp, weather headwinds, and a delayed chicken launch.
• Project Fresh turnaround: Management launched a four‑pillar plan (brand revitalization, operational excellence, system optimization, disciplined capital allocation) and expects 2026 to be a rebuilding year with roughly flat global system‑wide sales and sequential improvement in U.S. comps.
• International growth remains a bright spot: International system‑wide sales grew 6.2% in Q4 and 8.1% for 2025 with record net unit growth (121 net new restaurants) and a similar international development cadence expected in 2026.
• Operational improvements are showing results—U.S. company‑operated restaurants outperformed the broader system by ~310–410 bps in 2025, and the company is scaling enhanced training, field support, and restaurant tech to franchisees to lift customer satisfaction and execution.
• Guidance and capital priorities: 2026 targets include Adjusted EBITDA of $460–480M, Adj. EPS $0.56–0.60, FCF $190–205M, a maintained $0.14 quarterly dividend, continued share repurchases, but net leverage remains elevated (~4.8x) and system optimization is expected to reduce EBITDA by ~$15–20M.

Wendy’s Trading Up 2.9%

Shares of Wendy’s stock opened at $7.48 on Friday. The company has a 50-day moving average of $8.19 and a two-hundred day moving average of $8.94. Wendy’s has a 12-month low of $7.08 and a 12-month high of $16.20. The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 26.89. The stock has a market cap of $1.42 billion, a PE ratio of 7.96, a price-to-earnings-growth ratio of 1.40 and a beta of 0.38.

Wendy’s Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, March 16th. Shareholders of record on Monday, March 2nd will be issued a $0.14 dividend. The ex-dividend date of this dividend is Monday, March 2nd. This represents a $0.56 dividend on an annualized basis and a yield of 7.5%. Wendy’s’s dividend payout ratio (DPR) is 59.57%.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on WEN shares. UBS Group cut their price target on Wendy’s from $9.50 to $8.50 and set a “neutral” rating for the company in a research note on Tuesday, January 6th. Argus upgraded shares of Wendy’s to a “hold” rating in a research report on Wednesday, January 21st. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $8.50 target price on shares of Wendy’s in a report on Monday, December 22nd. Truist Financial dropped their price target on shares of Wendy’s from $12.00 to $11.00 and set a “buy” rating on the stock in a research note on Thursday, January 8th. Finally, Stifel Nicolaus set a $9.00 price objective on shares of Wendy’s in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have issued a Hold rating and five have issued a Sell rating to the company’s stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus target price of $10.20.

Hedge Funds Weigh In On Wendy’s

Several hedge funds have recently bought and sold shares of WEN. Quinn Opportunity Partners LLC boosted its position in Wendy’s by 20.5% during the fourth quarter. Quinn Opportunity Partners LLC now owns 1,466,811 shares of the restaurant operator’s stock worth $12,219,000 after purchasing an additional 250,000 shares in the last quarter. Stifel Financial Corp raised its stake in shares of Wendy’s by 8.7% during the 4th quarter. Stifel Financial Corp now owns 64,118 shares of the restaurant operator’s stock worth $534,000 after buying an additional 5,154 shares during the last quarter. PCM Encore LLC purchased a new stake in shares of Wendy’s in the 4th quarter worth about $138,000. Bridgefront Capital LLC boosted its position in shares of Wendy’s by 2,042.8% in the 4th quarter. Bridgefront Capital LLC now owns 220,361 shares of the restaurant operator’s stock worth $1,836,000 after buying an additional 210,077 shares in the last quarter. Finally, Bank of Nova Scotia grew its stake in Wendy’s by 363.8% in the 4th quarter. Bank of Nova Scotia now owns 190,144 shares of the restaurant operator’s stock valued at $1,584,000 after acquiring an additional 149,151 shares during the last quarter. 85.96% of the stock is owned by hedge funds and other institutional investors.

Wendy’s News Summary

Here are the key news stories impacting Wendy’s this week:

• Positive Sentiment: Q4 EPS beat — Wendy’s reported $0.16 EPS vs. consensus $0.14, showing some margin resilience despite traffic weakness. Wendy’s (WEN) Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: International strength — global systemwide sales grew internationally (Q4 and full-year), providing a growth pocket outside the U.S. weakness. THE WENDY’S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND PROVIDES 2026 OUTLOOK
• Positive Sentiment: Short-term traffic promotions — deals (e.g., $1 burgers) and limited-time items could support near-term comp trends if they drive visits. Wendy’s celebrating ‘singles’ with $1 burgers on Feb. 15. See deal
• Neutral Sentiment: Macro backdrop steady — CPI came in roughly as expected today, suggesting inflation dynamics aren’t an immediate upside/downside surprise for consumer spending. CPI Increased in Line With Expectations
• Neutral Sentiment: Analyst/earnings context available — full earnings call transcript and multiple analyst takes provide detail but deliver mixed views on whether Wendy’s is a value opportunity or a value trap. The Wendy’s Company (WEN) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Planned U.S. closures — management said it will close roughly 5–6% of U.S. restaurants in H1 2026 (about 240–360 locations), signaling structural problems in core U.S. markets. Wendy’s says as many as 350 US locations will close in the first half of this year
• Negative Sentiment: Weak FY26 guidance — Wendy’s set FY2026 EPS at $0.56–$0.60 vs. consensus ~$0.86, a sizable cut that pressures valuation and near‑term upside. THE WENDY’S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND PROVIDES 2026 OUTLOOK
• Negative Sentiment: Top-line weakness — Q4 revenue and systemwide sales declined (U.S. comps fell), and coverage notes the company’s U.S. struggles are expected to persist into FY26. Wendy’s Sales Dented by Persistent U.S. Struggles
• Negative Sentiment: Market reaction context — shares hit a 52-week low amid a highly shorted profile, amplifying downside risk if U.S. trends don’t stabilize. Highly Shorted Stock Wendy’s Hits 52-Week Low On Weak Outlook

Wendy’s Company Profile

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.