Wendy’s Q3 2025 profit falls as US store closures planned

Core Insights - Wendy's Company reported a net income of $44.25 million for Q3 2025, a decrease of 12% from $50.22 million in the same quarter last year, attributed to lower other income and reduced operating profit [1] - Operating profit fell to $92.05 million from $94.67 million year-over-year, impacted by weaker margins at US company-operated restaurants, lower franchise royalty revenue, and higher impairment of long-lived assets [1] - Total revenue for the quarter decreased to $549.51 million from $566.73 million, influenced by lower advertising fund revenue and reduced franchise royalty income, although partially offset by higher franchise fees [2] Financial Performance - Adjusted EBITDA increased by 2.1% to $138 million for Q3 2025 [2] - Sales during the period rose to $233.15 million from $230.40 million in the same quarter of the previous year [2] - Adjusted EBITDA is projected to be between $505 million and $525 million, with adjusted earnings per share expected to be between $0.82 and $0.89 [7] Systemwide Sales and Expansion - Global systemwide sales reached $3.5 billion, down 2.6%, primarily due to lower same-restaurant sales in the US, though partially offset by net new openings and same-restaurant growth in the International segment [3] - International systemwide sales increased by 8.6% across all regions [3] - The company opened 54 new restaurants in the quarter, totaling 172 new openings by the end of Q3 [3] Strategic Initiatives - The interim CEO highlighted that Q3 results met expectations, showcasing strength in the international business and adjusted EBITDA growth [4] - In the US, comparable sales at company-operated restaurants outperformed the system by 4% during Q3, aided by a renewed focus on operational excellence and the successful launch of new chicken tenders [5] - As part of the Project Fresh turnaround plan, the company plans to close 200 to 350 underperforming US locations, which represents a "mid single-digit percentage" of the approximately 6,000 US sites [6]