Core Viewpoint - Wendy's is implementing a turnaround plan called "Project Fresh" to address declining sales and stock performance, with earnings results expected on February 13 [1][2]. Group 1: Financial Performance - Wendy's stock has decreased nearly 46% over the past 12 months, with a forward P/E ratio around 9 and a price-to-sales ratio below 1, indicating it may be undervalued [2]. - Last quarter, global sales fell by 2.6%, and adjusted earnings per share decreased by 4% [1]. Group 2: Turnaround Strategy - The turnaround plan consists of four main pillars: brand revitalization, system optimization, operational excellence, and capital allocation [4]. - Wendy's is introducing new energy drinks, revamping coffee offerings, and focusing on chicken tenders to attract customers [4]. - The company is facing challenges with lower-income consumers, which is impacting sales, and may close up to 300 franchises in the U.S. [4]. Group 3: Market Context - The fast food and fast casual restaurant sectors have been struggling since the onset of the COVID-19 pandemic, with reduced foot traffic and a shift towards remote work [3].

Financial Data and Key Metrics Changes - For the full year 2025, the company delivered comparable sales growth of 2.4%, net restaurant growth of 2.9%, and system-wide sales growth of 5.3% [31][32] - Organic adjusted operating income growth was 8.3%, and nominal adjusted EPS growth was over 10% [7][30] - The company achieved its third consecutive year of approximately 8% organic adjusted operating income growth, demonstrating consistency within the industry [7][49] Business Line Data and Key Metrics Changes - Tim Hortons, which represents roughly 42% of operating profit, delivered comparable sales growth of 2.8% in Canada, outperforming the broader Canadian QSR industry [10][14] - The international segment, contributing about 27% of operating profit, saw comparable sales growth of 4.9% and net restaurant growth of 4.9%, driving system-wide sales growth of nearly 11% [14][15] - Burger King U.S. achieved comparable sales growth of 1.6% for the full year, including 2.6% in the fourth quarter [20][24] - Popeyes experienced a net restaurant growth of 1.6% but faced a decline in comparable sales of 3.2% for the year, resulting in system-wide sales growth of -0.7% [25][28] Market Data and Key Metrics Changes - In the international markets, particularly in Europe and Asia Pacific, the company benefited from structural growth and positive same-store sales, with notable performance in France and Japan [62][66] - Burger King China reported a 9.2% growth in comparable sales, driven by improvements in restaurant fundamentals and a new joint venture with CPE [16][17] Company Strategy and Development Direction - The company is focused on long-term investments and operational improvements, with a goal to return to a 99% franchise business model [9][30] - The strategy includes refranchising efforts at Burger King U.S. and expanding the restaurant footprint in China [6][30] - The upcoming Investor Day on February 26 will address the company's growth algorithm and plans for net restaurant growth [9][30] Management's Comments on Operating Environment and Future Outlook - Management noted that 2025 was a challenging year due to elevated costs and macroeconomic pressures, but the fundamentals of the business showed resilience [44][46] - The company expects to ramp back towards 5% unit growth by the end of the growth algorithm period, with a positive outlook for 2026 [32][40] - Management expressed confidence in the ability to build on the momentum from 2025, emphasizing the importance of franchisee profitability and operational consistency [30][44] Other Important Information - The company generated nearly $1.6 billion of free cash flow in 2025 and returned $1.1 billion of capital to shareholders through dividends [36][37] - The total liquidity at year-end was approximately $2.4 billion, with a net leverage ratio of 4.2x [37] Q&A Session Summary Question: Can you discuss the comparable sales evolution and trajectory in 2026, particularly for Tim Hortons and Burger King? - Management indicated that the strong performance in 2025 sets a positive foundation for 2026, with expectations for a similar consumer environment and continued focus on fundamentals [53][54] Question: How much of the international momentum is driven by a healthier backdrop versus share gains? - Management responded that the momentum is a combination of a supportive market backdrop and effective local strategies, with strong performance in various international markets [60][63] Question: Can you summarize the performance in developed markets, particularly Europe? - Management highlighted consistent positive performance across major Western European markets, with strong results in Turkey and a healthy business in Canada [71][72]

Core Insights - Tilray Brands, Inc. is preparing for a major sports event on February 8, 2026, by offering exclusive game day experiences at its craft beer tap rooms across the U.S. [1] - The company aims to enhance fan engagement through special promotions, food, and entertainment options during the game [1][15]. Tap Room Promotions - Montauk Brewing Company is offering $10 crowlers and a buy-two-get-one-free deal on 6-packs leading up to the game [3]. - Blue Point Brewing Co will host a promotion where guests can win a 75" smart TV and is offering catering packages that need to be ordered by February 6 [4]. - SweetWater Brewing Co in Atlanta is providing live music and exclusive draft beer specials, along with game-ready to-go deals for $20 [5]. - Terrapin Beer Co will have extended hours and half-priced pints, along with food offerings from a food truck [6]. - Breckenridge Brewing is offering various to-go specials, including wings and beer packages [7][14]. - Atwater Brewery has a Super 60 Deal for $60, which includes pizza, wings, and a growler or 12-pack [11]. - 10 Barrel Brewing is promoting a Touchdown Meal Deal for $50, along with bingo and raffles for in-house guests [12]. - Hop Valley Brewing is offering a Jumbo Pretzel Pack and other to-go specials for fans [13]. Company Overview - Tilray Brands, Inc. is a global lifestyle and consumer packaged goods company with operations in multiple regions, including North America and Europe [15]. - The company focuses on creating memorable experiences through its diverse portfolio of brands, which includes cannabis, beverages, and wellness products [15].

Financial Data and Key Metrics Changes - The company reported a notable improvement in restaurant-level margins, achieving approximately 17% and aiming to approach 18% [4][22] - The company plans to double its new unit openings in 2026 compared to 2025, with a pipeline that is already under construction [32][33] Business Line Data and Key Metrics Changes - The company has refreshed its menu with new items such as burritos, burrito bowls, and salads, while also focusing on chicken on the bone [4] - The introduction of chicken tenders and a new spicy flavor profile is expected to attract more customers [10][11] Market Data and Key Metrics Changes - The company is positioned at the intersection of quick service and fast casual dining, emphasizing affordability and value in its offerings [7] - The loyalty program has seen a 6% increase in visit frequency among users, indicating a positive response to targeted discounts [8][15] Company Strategy and Development Direction - The company is focusing on a brand turnaround through marketing campaigns like "Let's Get Loco" and menu innovation [3][4] - There is a strong emphasis on operational efficiency, with improvements in labor scheduling and supply chain management contributing to margin enhancements [18][19] Management Comments on Operating Environment and Future Outlook - The macro environment remains challenging, with consumers under pressure, but the company feels well-positioned due to its value offerings [6][7] - Management expressed confidence in achieving long-term targets of 18%-20% store-level margins, contingent on sales-driving initiatives [22] Other Important Information - The company is investing in remodeling existing restaurants and enhancing equipment to drive sales and operational efficiencies [34][36] - The marketing strategy for 2026 includes six campaigns, reflecting a rich pipeline of innovation and a focus on variety and value [13][14] Q&A Session Summary Question: What has been accomplished in the brand turnaround? - The company has launched the "Let's Get Loco" campaign and refreshed its menu, focusing on quality and fresh ingredients [3][4] Question: How is the company positioned in the current macro environment? - The company acknowledges the challenging environment but believes it offers affordable and valuable options compared to competitors [6][7] Question: What are the main drivers of margin improvements? - Margin improvements have been driven by evaluating supply chain costs, transitioning to different distributors, and implementing technology for labor efficiency [18][19] Question: What is the long-term target for margins? - The company aims for 18%-20% store-level margins, with a focus on sales-driving initiatives to achieve this [22] Question: How is the company planning to use its free cash flow? - The company plans to use cash for new store development, remodeling existing locations, and enhancing operational efficiencies [34][36]

Core Insights - Wendy's Company reported better-than-expected third-quarter earnings with adjusted earnings per share of 24 cents, surpassing the analyst consensus estimate of 20 cents [1] - Quarterly sales reached $549.516 million, a 3% decline year over year, but exceeded the expected $534.457 million [1] Financial Performance - Comparable sales at company-operated restaurants outperformed the system by 4% during the third quarter [2] - The company reaffirmed its 2025 adjusted EPS outlook at a range of 82 cents to 89 cents, compared to the analyst consensus estimate of 86 cents [2] Stock Performance - Following the earnings announcement, Wendy's shares fell 4.4% to trade at $8.57 [2] Analyst Ratings and Price Targets - TD Cowen analyst Andrew M. Charles maintained a Hold rating and lowered the price target from $11 to $9 [5] - Evercore ISI Group analyst David Palmer maintained an In-Line rating and reduced the price target from $12 to $11 [5] - RBC Capital analyst Logan Reich maintained a Sector Perform rating and cut the price target from $10 to $9 [5]

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]

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]