Wendy’s(WEN) - 2026 Q1 - Quarterly Results

Financial Performance - Global systemwide sales were $3.4 billion, a decrease of 1.1% compared to the previous year[4]. - Total revenues for the first quarter of 2025 were$ 523.5 million, a decrease of 2.1% year-over-year[5]. - Net income for the first quarter was $39.2 million, down 6.7% from the previous year[5]. - The Company reported revenues of$ 534.8 million for the three months ended March 31, 2024, compared to $523.5 million for the same period in 2025, reflecting a decrease of approximately 2.4%[37]. - Net income for the three months ended March 31, 2024, was$ 42.0 million, down from $39.2 million in 2025, representing a decline of about 4.3%[37]. - Adjusted EBITDA decreased to$ 127.8 million in 2024 from $124.5 million in 2025, indicating a decline of approximately 2.6%[43]. - Adjusted earnings per share decreased by 13.0% to$ 0.20[5]. - Diluted earnings per share fell from $0.20 in Q1 2024 to$ 0.19 in Q1 2025, a decrease of 5%[46]. Sales and Restaurant Performance - U.S. same-restaurant sales declined by 2.8%, while international same-restaurant sales grew by 2.3%[3]. - The company added 68 net new restaurants, contributing to a total restaurant count of 7,308 globally[4]. - Digital sales mix reached a record 20.3% of total sales[4]. - Same-restaurant sales and systemwide sales growth are calculated on a constant currency basis, excluding the impact of foreign currency translation for better year-over-year comparability[33]. Cash Flow and Liquidity - Free cash flow increased by 21.4% to $68.0 million[5]. - Cash and cash equivalents decreased from$ 450.5 million in December 2024 to $335.3 million in March 2025, a decline of about 25.6%[39]. - Net cash provided by operating activities decreased from$ 99,987,000 in Q1 2024 to $85,415,000 in Q1 2025, a decline of about 14.7%[49]. - The Company’s free cash flow is defined as cash flows from operations minus capital expenditures and other specified expenses, highlighting its importance for liquidity and investment opportunities[25]. Shareholder Returns and Capital Management - The company expects full-year adjusted EBITDA to be between$ 530 million and $545 million[18]. - The company plans to return$ 173.5 million to shareholders through dividends and share repurchases[4]. - Total liabilities increased slightly from $4.775 billion in December 2024 to$ 4.789 billion in March 2025, reflecting a growth of approximately 0.3%[39]. Advertising and Marketing - The Company’s advertising funds revenue decreased from $104.9 million in 2024 to$ 100.4 million in 2025, a decline of approximately 4.3%[37]. - Advertising funds revenue decreased from $104,944,000 in Q1 2024 to$ 100,360,000 in Q1 2025, a decline of about 4.6%[46]. - The company reported a net change in advertising funds impact from $(21,850,000) in Q1 2024 to$ 6,093,000 in Q1 2025, showing a significant turnaround[49]. Cost Management - Reorganization and realignment costs were $5,673,000 in Q1 2024, compared to a credit of$ (692,000) in Q1 2025, indicating a shift in expenses[46]. - Capital expenditures were $17,354,000 in Q1 2024 and$ 17,679,000 in Q1 2025, indicating a slight increase[49]. Operating Performance - The Company’s operating profit rose from $81.2 million in 2024 to$ 83.1 million in 2025, an increase of about 2.4%[37]. - The number of shares used to calculate diluted income per share decreased from 206.9 million in 2024 to 201.6 million in 2025[37].