Wendy's Company (NASDAQ:WEN) posted better-than-expected third-quarter earnings on Friday.The company reported third-quarter adjusted earnings per share of 24 cents, beating the analyst consensus estimate of 20 cents. Quarterly sales of $549.516 million (down 3% year over year) outpaced the Street view of $534.457 million."Comparable sales at Company-operated restaurants outperformed the system by 4% during the third quarter and a renewed focus on execution resulted in the successful launch of our new chick ...

The Wendy’s Company has posted net income of $44.25m for the third quarter (Q3) of 2025, down 12% from $50.22m a year earlier, citing lower other income and reduced operating profit. Operating profit declined to $92.05m from $94.67m at the same time in the previous year. The company pointed to a weaker margin at US company-operated restaurants, lower franchise royalty revenue and higher impairment of long-lived assets. In Q3, adjusted earnings before interest, taxation, depreciation and amortisation (EBI ...

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]

Company Overview - Wingstop Inc. was founded in 1994 and is headquartered in Dallas, TX, operating over 2,800 restaurants worldwide, with 98% of the total restaurant count owned by brand partners [4] - The company specializes in cooked-to-order and hand sauced-and-tossed wings, tenders, and chicken sandwiches, offering 12 bold, distinctive flavors along with signature sides and housemade dips [4] - Wingstop achieved approximately $5 billion in system-wide sales in fiscal 2024 and has experienced 21 consecutive years of same-store sales growth [4] Recent Promotions - From August 18 to August 24, Wingstop is offering a Buy-One-Get-One free promotion on 4-piece tenders, allowing customers to receive 8 tenders in total [1][2] - The promotion is aimed at enhancing customer engagement during the fantasy draft season and preseason matchups, as noted by Wingstop's Chief Revenue Officer, Mark Christenson [2] - Customers can redeem the offer using the promo code BOGOTENDERS when ordering through Wingstop's website or app [2] Marketing and Social Media - Wingstop encourages fans to follow their social media channels, including TikTok, Instagram, X, and Facebook, for the latest updates on promotions and menu innovations [3]

Financial Data and Key Metrics Changes - Global system-wide sales declined by 1.8% on a constant currency basis, driven by a 3.6% decrease in same restaurant sales in the U.S. [33][16] - Adjusted EBITDA was $146.6 million, an increase of 2.5% year-over-year, while adjusted earnings per share rose by 7.4% to $0.29 [38][18] - Free cash flow generated in the first half of the year was $109.5 million, reflecting strong cash generation capabilities [39] Business Line Data and Key Metrics Changes - The U.S. same restaurant sales declined by 3.6%, partially offset by a higher average check, while same restaurant sales at U.S. company-owned restaurants outperformed the U.S. system by almost 300 basis points, declining only 0.7% [33][34] - The international segment achieved system-wide sales growth of 8.7%, with notable increases in Japan (27%) and Mexico (16%) [35][34] Market Data and Key Metrics Changes - The company anticipates full-year global system-wide sales to decline between 3% to 5% year-over-year, reflecting a challenging competitive environment and dynamic consumer behavior [48][29] - U.S. company-operated restaurant margin is expected to be around 14%, with commodity inflation projected at approximately 4% [49] Company Strategy and Development Direction - The company is focusing on improving execution and performance while maintaining its long-term strategy, emphasizing the importance of franchisee partnerships [5][6] - Key strategic priorities include fresh food innovation, enhancing customer experience, and accelerating net unit growth, with a target of 2% to 3% net new unit growth for the year [30][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the consumer and competitive environment has changed significantly, leading to a revised outlook for the year [4][29] - The company is committed to strengthening its franchisee relationships and improving operational efficiencies to drive better results [14][15] Other Important Information - The company returned over $88 million to shareholders through dividends and share repurchases in the second quarter, totaling over $262 million in the first half of the year [18][43] - The company is on track to return approximately $325 million to shareholders in 2025, an increase of $40 million compared to 2024 [43] Q&A Session Summary Question: Assessment of marketing value menu performance - Management noted that the first half of the year faced challenges due to changing consumer behavior and weather impacts, leading to a reassessment of marketing strategies for the second half [61][60] Question: Franchisee sentiment and alignment on value - Management indicated that franchisee relationships are good but can be improved, emphasizing the need for better communication and prioritization of initiatives [72][74] Question: Revisiting U.S. franchise development - Management confirmed a commitment to improving franchisee economics through new data analytics capabilities and detailed P&L discussions at the restaurant level [86][87] Question: Customer satisfaction and same-store sales growth - Management is actively tracking customer satisfaction and believes improvements will lead to increased frequency of visits, with positive trends already observed [90][91] Question: Core menu pricing strategy - Management acknowledged the need to evaluate core menu pricing and emphasized the importance of quality in conjunction with pricing strategies [96][98] Question: Changes to chicken patty and focus on chicken - Management confirmed the use of high-quality ingredients for chicken products and expressed confidence in the new chicken tenders outperforming competitors in tests [107][108]