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]

Core Viewpoint - Wendy's is expected to report a decline in second-quarter revenue and earnings per share, continuing a trend of missed analyst estimates in recent quarters [1][2]. Financial Performance - Analysts estimate second-quarter revenue at $560.4 million, down from $570.7 million in the previous year [1]. - Expected earnings per share for the second quarter is 26 cents, a decrease from 27 cents in the same quarter last year [2]. - Wendy's has missed analyst estimates in six of the last ten quarters [2]. Traffic and Sales Trends - Wendy's visits decreased by 3.0% year-over-year in the second quarter, an improvement from a 4.7% decline in the first quarter [3]. - The company reported a sales decline of 2.1% year-over-year in the first quarter, with U.S. sales down 2.6% [4]. Promotions and Future Growth - The second quarter included several promotions, such as new Frosty's and the Cajun Crunch Spicy Chicken, along with free fries offerings [4]. - A new promotion, "Meal of Misfortune," in partnership with Netflix's "Wednesday," is set to launch in the third quarter, which may help drive future traffic [5][7]. - Wendy's is focusing on international expansion, with plans to achieve 70% of unit growth outside the U.S. and aims to reach 2,000 international restaurants by 2028 [8][9]. Leadership Changes - The company is currently searching for a new CEO following Kirk Tanner's departure, with CFO Ken Cook serving as interim CEO [7]. Stock Performance - Wendy's stock is currently flat at $10.02, down 37.8% year-to-date, within a 52-week trading range of $9.74 to $20.60 [9].