Refreshed value menu now features new ways to customize Biggie Deals, giving consumers more choices to satisfy their cravings Continue Reading Wendy's Launches New Biggie Deals Value Menu Wendy's commitment to value runs deep in its brand history. It started back in 1989 when Wendy's became the first QSR to introduce the value menu concept. After nearly 40 years of listening to fans, along with the launch of the iconic Biggie Bag in 2019, the new Biggie Deals value menu doubles down on quality and choice by ...

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].