Core Insights - Wendy's Company experienced a premarket surge following a third-quarter earnings beat, attributed to stronger execution, resilient international growth, and cost discipline [1] Financial Performance - The company reported adjusted earnings per share of 24 cents, surpassing the analyst consensus estimate of 20 cents [2] - Quarterly sales amounted to $549.516 million, reflecting a 3% year-over-year decline but exceeding the Street view of $534.457 million [2] - Adjusted EBITDA increased by 2.1% to $135.2 million, driven by reduced advertising spend, lower general and administrative expenses, and higher other operating income [6] Revenue Breakdown - The decrease in total revenues was primarily due to lower advertising funds revenue and franchise royalty revenue, partially offset by an increase in franchise fees [3] - Global systemwide sales totaled $3.5 billion, showing a 2.6% decline, influenced by lower same-restaurant sales in the U.S., but supported by new restaurant openings and growth in the International segment [4] International Growth - International systemwide sales rose by 8.6%, with growth reported across all regions [4] Operational Insights - Comparable sales at company-operated restaurants outperformed the system by 4% during the third quarter, aided by the successful launch of new chicken tenders [5] - U.S. company-operated restaurant margin contracted to 13.1% from 15.6% a year ago, primarily due to commodity inflation, traffic decline, and labor rate inflation [5] Dividend and Outlook - The company announced a regular quarterly cash dividend of 14 cents per share, payable on December 15 [7] - Wendy's reaffirmed its 2025 adjusted EPS outlook at 82 cents to 89 cents, compared to the analyst consensus estimate of 86 cents [8]

Financial Data and Key Metrics Changes - Global system-wide sales declined by 2.6%, primarily due to a 4.7% decline in U.S. same restaurant sales, reflecting increased industry competition and consumer pressure [14][19]. - Adjusted EBITDA rose by 2.1% to $138 million, driven by reductions in advertising and G&A expenses [17][22]. - Adjusted EPS was $0.24 per share, slightly below the previous year's $0.25 [17][22]. - Free cash flow increased to $195-$210 million, up by $35 million from prior expectations, reflecting reduced capital expenditures [18][27]. Business Line Data and Key Metrics Changes - U.S. company-operated restaurant same restaurant sales outperformed the overall U.S. system by 400 basis points, declining only 0.7% [19][20]. - International system-wide sales grew by 8.6%, with significant growth in regions like Mexico (over 18%) and Puerto Rico (over 10%) [16][20]. - Digital sales in the U.S. increased by 14.9%, reaching a digital mix of 20.3% [20]. Market Data and Key Metrics Changes - The U.S. market remains under pressure, with sales challenges noted, while international markets continue to show strong growth [5][16]. - The company anticipates international net unit growth of over 9% in 2025, with a focus on expanding in Canada and the U.K. [12][13]. Company Strategy and Development Direction - The company is prioritizing average unit volume (AUV) growth over net unit growth in the U.S. as part of Project Fresh, a comprehensive turnaround plan [5][12]. - Project Fresh focuses on brand revitalization, operational excellence, system optimization, and capital allocation to enhance customer experience and profitability [6][10][12]. - The company is working closely with franchisees to evaluate underperforming restaurants and develop action plans, which may include closures to strengthen the overall system [11][39]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the competitive landscape and consumer pressure affecting U.S. sales, while expressing confidence in the international growth trajectory [5][14]. - The company maintains its outlook for full-year global system-wide sales, adjusted EBITDA, and adjusted EPS, while increasing the free cash flow outlook [17][27]. - Management emphasized the importance of enhancing franchisee profitability and customer experience as key to long-term growth [51][52]. Other Important Information - The company has reduced its 2025 U.S. build-to-suit capital by approximately $20 million, reflecting a strategic shift towards AUV growth [12][18]. - The company has returned over $300 million to shareholders year-to-date through dividends and share repurchases, with plans to exceed $325 million for the full year [17][24]. Q&A Session Summary Question: Franchisee cash flow and balance sheet levels - The U.S. franchisee system remains healthy overall, with some facing acute financial pressure. The company is working with these franchisees on a case-by-case basis to improve restaurant-level economics [30][31]. Question: Factors leading to underperformance relative to peers - The company noted increased pressure on lower-income consumers and emphasized its value proposition, including the Biggie Bag and $8 meal deals, which performed well [36][37]. Question: Expected closures in the U.S. due to system optimization - The company estimates mid-single-digit percentage closures, which could amount to around 300 units, with a focus on improving overall system health [39][40]. Question: Clarification on U.S. AUV growth targets - The company is focused on net unit development coming in around the low end of its guidance, with gross unit development still on track [41][42]. Question: Insights from customer segmentation study - The company is conducting a comprehensive customer segmentation study to better understand consumer preferences and improve brand communication [46][47]. Question: Beverage platform performance and breakfast strategy - Recent beverage launches performed well, and breakfast remains a key focus, with flexibility allowed for franchisees with low breakfast sales [49][51].

Financial Performance - Global systemwide sales decreased by 2.6%[25], and global system same-restaurant sales (SRS) declined by 3.7%[25] - U S systemwide sales decreased by 4.4%[25], with a SRS decline of 4.7%[25] - International systemwide sales experienced growth of 8.6%[25], and SRS grew by 3.0%[25] - Adjusted EBITDA increased by 2.1% to $138 million[32] - Adjusted EPS decreased by 4.0% to $0.24[32] Capital Allocation and Cash Flow - The company returned over $40 million to shareholders through dividends and share repurchases[25] - Year-to-date free cash flow was $195.6 million[34] - The company is on track to return over $325 million to shareholders in 2025[38] Strategic Initiatives - The company launched Project FRESH, a strategic plan to drive profitable growth and long-term value across the U S system[12] - The company opened 172 new restaurants globally year-to-date through Q3[25] 2025 Outlook - Global systemwide sales growth is projected to be between (5.0)% and (3.0)%[39] - Adjusted EBITDA is expected to be between $505 million and $525 million[39] - Adjusted EPS is projected to be between $0.82 and $0.89[39] - Free cash flow is expected to be between $195 million and $210 million[39]

Core Insights - Wendy's reported a decline in both sales and profit for the third quarter, attributed to consumers reducing their spending at restaurants [1] Company Performance - The company experienced lower sales figures in the third quarter compared to previous periods [1] - Profit margins were also negatively impacted, reflecting broader trends in consumer behavior [1] Industry Trends - The restaurant industry is facing challenges as consumers are cutting back on dining out, which is affecting sales across various chains [1]

Financial Performance - Third quarter systemwide sales decreased by 2.6% to $3.5 billion, with U.S. sales down 4.4% and international sales up 8.6%[4] - Net income for the third quarter was $44.3 million, a decrease of 11.8% compared to the previous year[5] - Adjusted earnings per share decreased by 4.0% to $0.24, impacted by higher depreciation and tax rates[5] - Total revenues for the three months ended September 29, 2024, were $566.74 million, a decrease of 4.1% compared to $549.52 million for the same period in 2025[40] - Net income for the three months ended September 29, 2024, was $50.22 million, down from $44.25 million in 2025, representing a decline of 8.3%[40] - Net income for the nine months ended September 29, 2024, was $146,860, while for the same period in 2025, it decreased to $138,594, representing a decline of approximately 1.8%[46] - Total revenues for the nine months ended September 29, 2024, were $1,672,219, which decreased to $1,633,917 in 2025, reflecting a decline of approximately 2.3%[46] Adjusted Metrics - Adjusted EBITDA increased by 2.1% to $138.0 million, driven by lower advertising spend and reduced general and administrative expenses[5] - Adjusted EBITDA for the nine months ended September 29, 2024, was not explicitly stated but is a key performance measure used by the Company for benchmarking[27] - Adjusted EBITDA for the nine months ended September 29, 2024, was $406,108, slightly increasing to $409,195 in 2025, indicating a growth of about 0.5%[46] Cash Flow and Liquidity - Free cash flow outlook was increased by $35 million to a range of $195 to $210 million for the year[18] - Free cash flow for the nine months ended September 29, 2024, was $213,036, which decreased to $195,605 in 2025, a reduction of about 8.2%[54] - The company reported a net cash provided by operating activities of $286,681 for the nine months ended September 29, 2024, which decreased to $275,263 in 2025, a decline of about 4.0%[54] - The company experienced a net cash used in investing activities of $(68,796) in 2024, which increased to $(100,559) in 2025, indicating a significant increase in cash outflow of approximately 46.1%[54] - The company’s cash, cash equivalents, and restricted cash at the end of the period decreased from $554,529 in 2024 to $352,015 in 2025, a decline of about 36.5%[54] Shareholder Returns - The company returned $40.7 million to shareholders through dividends and share repurchases in the third quarter[4] - The company repurchased common stock amounting to $60,056 in the nine months ended September 29, 2024, which surged to $200,766 in 2025, reflecting an increase of approximately 234.5%[54] Operational Developments - The company opened 54 new restaurants in the third quarter, bringing total openings to 172 for the year[4] - The company launched Project Fresh, a comprehensive turnaround plan focused on brand revitalization and operational excellence[3] Asset and Liability Changes - The Company’s total assets decreased from $5.03 billion as of December 29, 2024, to $4.98 billion as of September 28, 2025[41] - Current liabilities increased significantly from $397.63 million to $793.73 million over the same period, indicating a potential liquidity concern[41] - The number of shares used to calculate diluted income per share decreased from 204.25 million in 2024 to 191.25 million in 2025[40] - The Company’s retained earnings increased from $399.70 million to $435.29 million, reflecting a positive trend in accumulated profits[41] Franchise and Advertising Revenue - The Company reported a decrease in franchise royalty revenue to $127.81 million for the three months ended September 28, 2025, from $132.60 million in the previous year[40] - The company’s advertising funds revenue for the nine months ended September 29, 2024, was $(343,162), which decreased to $(318,738) in 2025, a reduction of approximately 7.1%[46] Restaurant Performance - U.S. Company-operated restaurant margin decreased to 13.1%, down 2.5% from the previous year due to commodity inflation and labor costs[5] - Same-restaurant sales growth is calculated on a constant currency basis, excluding the impact of foreign currency translation, to provide better year-over-year comparability[36]

Core Insights - The Wendy's Company reported third-quarter results that met expectations, highlighting strong international sales growth of 8.6% and the opening of 54 new restaurants globally [1][11] - U.S. comparable sales at company-operated restaurants outperformed the system by 4%, driven by operational excellence and the successful launch of new chicken tenders [2][11] - The company is implementing Project Fresh, a comprehensive turnaround plan focused on brand revitalization and operational excellence [2] Operational Highlights - Systemwide sales growth for the third quarter was 1.8%, with U.S. sales declining by 4.4% and international sales growing by 8.6% [2][11] - Same-restaurant sales growth was 0.2% in the U.S. and 3.0% internationally for the third quarter [2] - The total number of restaurants increased to 7,363, with 54 new openings in the third quarter [11] Financial Highlights - Total revenues for the third quarter decreased by 3.0% to $549.5 million, while adjusted revenues were nearly flat at $442.5 million [4][11] - Net income fell to $44.3 million, a decrease of 11.8%, and adjusted EBITDA increased by 2.1% to $138.0 million [4][11] - Reported diluted earnings per share were $0.23, with adjusted earnings per share decreasing by 4.0% to $0.24 [4][11] Cash Flow and Shareholder Returns - Cash flow from operations was $275.3 million, while free cash flow decreased to $195.6 million [4][11] - The company returned $40.7 million to shareholders through dividends and share repurchases [11][16] - A quarterly dividend of $0.14 per share was declared, payable on December 15, 2025 [16] 2025 Outlook - The company reaffirmed its global systemwide sales growth outlook of -5.0% to -3.0% and adjusted EBITDA expectations of $505 to $525 million [17] - Free cash flow expectations were raised to $195 to $210 million, reflecting a positive adjustment in capital expenditures [18]

Core Insights - Wendy's Company (NASDAQ:WEN) is set to release its third-quarter earnings results on November 7, with analysts expecting earnings of 20 cents per share, a decrease from 25 cents per share in the same period last year [1] - The consensus estimate for Wendy's quarterly revenue is $534.51 million, compared to $566.74 million reported last year [1] Earnings Performance - In the second quarter, Wendy's reported adjusted earnings per share of 29 cents, surpassing the analyst consensus estimate of 26 cents [2] - Following the earnings report, Wendy's shares fell by 2.8%, closing at $8.83 [2] Analyst Ratings and Price Targets - Stifel analyst Chris O'Cull maintained a Hold rating and reduced the price target from $12 to $11 [4] - Mizuho analyst Nick Setyan initiated coverage with an Underperform rating and a price target of $8 [4] - Barclays analyst Jeffrey Bernstein maintained an Equal-Weight rating and lowered the price target from $11 to $9 [4] - Goldman Sachs analyst Christine Cho kept a Sell rating and cut the price target from $10 to $9 [4] - Jefferies analyst Alexander Slagle maintained a Hold rating and reduced the price target from $10 to $9 [4]

The Wendy's Company (NASDAQ:WEN) will release earnings results for the third quarter before the opening bell on Friday, Nov. 7.Analysts expect the fast food company to report quarterly earnings at 20 cents per share. That's down from 25 cents per share in the year-ago period. The consensus estimate for Wendy's quarterly revenue is $534.51 million. Benzinga Pro shows higher quarterly revenue, $566.74 million, last year around this time.On Aug. 8, the company reported second-quarter adjusted earnings per shar ...

Core Viewpoint - Wendy's is set to release its third-quarter earnings on November 7, with expectations of a decline in earnings per share and a slight increase in revenue compared to the previous year [1] Earnings Expectations - Analysts predict Wendy's will report earnings of 20 cents per share, down from 25 cents per share in the same quarter last year [1] - The consensus estimate for quarterly revenue is $534.51 million, while last year's revenue was approximately $566.74 million [1] Dividend Information - Wendy's currently offers an annual dividend yield of 6.17%, translating to a quarterly dividend of 14 cents per share, or 56 cents annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 10,714 shares, equating to a total investment of about $97,283 [3] - For a more conservative monthly income goal of $100, an investor would need 2,143 shares, requiring an investment of around $19,458 [3] Dividend Yield Dynamics - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which can fluctuate based on stock price changes [4] - An increase in stock price will decrease the dividend yield, while a decrease in stock price will increase the yield, assuming the dividend payment remains constant [4][5] Stock Performance - Wendy's shares rose by 2.1% to close at $9.08 on a recent Wednesday [5] - Analyst Chris O'Cull from Stifel maintained a Hold rating on Wendy's and lowered the price target from $12 to $11 [5]

Core Insights - Wendy's Company (NASDAQ:WEN) is set to release its third-quarter earnings results on November 7, with analysts predicting earnings of 20 cents per share, a decrease from 25 cents per share in the same period last year [1] - The consensus estimate for Wendy's quarterly revenue is $534.51 million, while last year's revenue around this time was reported at $566.74 million [1] Dividend Information - Wendy's currently offers an annual dividend yield of 6.17%, translating to a quarterly dividend of 14 cents per share, or 56 cents annually [2] - To achieve a monthly income of $500 from dividends, an investor would need to own approximately 10,714 shares, equating to a total investment of about $97,283 [3] - For a more conservative monthly income goal of $100, an investor would need 2,143 shares, requiring an investment of around $19,458 [3] Dividend Yield Dynamics - The dividend yield is calculated by dividing the annual dividend payment by the current stock price, which means it fluctuates with changes in stock price [4] - For instance, if a stock pays an annual dividend of $2 and its price rises from $50 to $60, the yield decreases from 4% to 3.33% [4] - Conversely, if the stock price drops to $40, the yield increases to 5% [4] Stock Performance and Analyst Ratings - Wendy's shares increased by 2.1%, closing at $9.08 on Wednesday [5] - Analyst Chris O'Cull from Stifel maintained a Hold rating on Wendy's and reduced the price target from $12 to $11 [5]