Wendy’s(US:WEN)2025-11-07 12:14Financial 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]