Financial Performance - Global systemwide sales declined by 1.1%[11], while global same-restaurant sales (SRS) decreased by 2.1%[11] - International systemwide sales grew by 8.9%[12], with SRS growth of 2.3%[12] - U S Company restaurant margin was 14.8%[35], a decrease of 50 basis points compared to 15.3%[35] - Adjusted EBITDA decreased by 2.6% to $124.5 million[35] from $127.8 million[35] - Adjusted EPS decreased by 13.0% to $0.20[35] from $0.23[35] - Free cash flow increased by $12 million to $68 million[38] from $56 million[38] Capital Allocation - The company returned over $173 million to shareholders through dividends and share repurchases[12] - 8.2 million shares were repurchased in Q1[39] - The company anticipates repurchasing up to an additional $25 million of shares in 2025[39] - The Q2 dividend is $0.14 per share[39] 2025 Outlook - Net unit growth is projected to be between 2% and 3%[30, 40] - Global systemwide sales growth is expected to range from -2.0% to flat[40] - Adjusted EBITDA is projected to be between $530 million and $545 million[40] - Adjusted EPS is expected to be between $0.92 and $0.98[40] - Free cash flow is projected to be between $185 million and $205 million[40] - Capital expenditures are expected to be between $100 million and $110 million[40]

Core Viewpoint - Wendy's shares rose despite disappointing first-quarter sales, with analysts providing mixed assessments on the company's performance and outlook [1][2][6]. Financial Performance - Wendy's reported first-quarter adjusted EBITDA of $124.5 million, exceeding consensus estimates of $122.1 million [2]. - Total revenue for the quarter was $523.5 million, falling short of the consensus of $526.5 million [6]. - U.S. same-store sales declined by 2.8%, worse than the expected decline of 1.6% [2]. - Global same-store sales decreased by 2.1%, also worse than the consensus of a 1% decline [6]. Guidance and Outlook - Management lowered full-year systemwide sales growth guidance to a range of -2% to flat, down from a previous projection of +2% to +3% [3]. - The earnings guidance for 2025 was reduced to 92 cents-98 cents per share, from a prior range of 98 cents-$1.02 per share [7]. - EBITDA outlook for 2025 was trimmed to $530-$545 million, below Street expectations of $546 million [11]. Analyst Ratings and Insights - Truist Securities maintained a Buy rating but reduced the price target from $17 to $16 [2]. - RBC Capital Markets reiterated a Sector Perform rating with a price target of $14, noting consumer softness impacting sales [4]. - Stephens reaffirmed an Equal-weight rating and price target of $14, highlighting the impact of deteriorating consumer sentiment [6]. - KeyBanc Capital Markets maintained a Sector Weight rating, indicating expectations of low-to-middle single-digit same-store sales growth in the current quarter [8]. - Oppenheimer reiterated a Perform rating, reflecting concerns over the uncertain macroeconomic environment [11]. Market Trends and Challenges - The decline in same-store sales was attributed to adverse weather conditions and a macro pull-back in demand [3]. - Analysts noted that the trends turned negative after a brief positive period in late February and early March [12]. - The company is planning menu innovations and brand collaborations to boost momentum in the second half of the year [9][10].

The Wendy’s Company (WEN) Q1 2025 Earnings Call May 02, 2025 08:30 AM ET Company Participants Aaron Broholm - Head of Investor RelationsKirk Tanner - CEO, President & DirectorKen Cook - CFODavid Palmer - Senior Managing DirectorDennis Geiger - Executive Director - Equity ResearchJon Tower - Director & Equity Research - Consumer & RestaurantsLauren Silberman - DirectorMargaret-May Binshtok - VP - Equity ResearchAndrew Charles - Managing DirectorRahul Krotthapalli - Vice President - Equity ResearchChris O’Cul ...

The Wendy’s Company (WEN) Q1 2025 Earnings Call May 02, 2025 08:30 AM ET Speaker0 Good morning. Welcome to The Wendy's Company Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. You may begin your conference. Good morning, and thank Speaker1 you for joining our fiscal twenty twenty five first quarter earnings conference call. After this brief introduction, Kirk Tanner, Pres ...