Wendy’s (NASDAQ:WEN) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Wendy’s (NASDAQ:WEN) announced its quarterly earnings results on Friday. The restaurant operator reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.02, FiscalAI reports. Wendy’s had a return on equity of 125.74% and a net margin of 8.43%.The company had revenue of $439.60 million during the quarter, compared to analyst estimates of $537.11 million. During the same quarter last year, the firm posted $0.25 earnings per share. The firm’s revenue was down 5.5% on a year-over-year basis. Wendy’s updated its FY 2026 guidance to 0.560-0.600 EPS.

Here are the key takeaways from Wendy’s’ conference call:

• U.S. sales weakness: Global system-wide sales fell 8.3% in Q4 and U.S. same-restaurant sales were down ~11.3%, driven by reduced marketing, a tough SpongeBob comp, weather headwinds, and a delayed chicken launch.
• Project Fresh turnaround: Management launched a four?pillar plan (brand revitalization, operational excellence, system optimization, disciplined capital allocation) and expects 2026 to be a rebuilding year with roughly flat global system?wide sales and sequential improvement in U.S. comps.
• International growth remains a bright spot: International system?wide sales grew 6.2% in Q4 and 8.1% for 2025 with record net unit growth (121 net new restaurants) and a similar international development cadence expected in 2026.
• Operational improvements are showing results—U.S. company?operated restaurants outperformed the broader system by ~310–410 bps in 2025, and the company is scaling enhanced training, field support, and restaurant tech to franchisees to lift customer satisfaction and execution.
• Guidance and capital priorities: 2026 targets include Adjusted EBITDA of $460–480M, Adj. EPS $0.56–0.60, FCF $190–205M, a maintained $0.14 quarterly dividend, continued share repurchases, but net leverage remains elevated (~4.8x) and system optimization is expected to reduce EBITDA by ~$15–20M.

Wendy’s Price Performance

Wendy’s stock traded up $0.28 during mid-day trading on Friday, reaching $7.55. 11,444,557 shares of the company’s stock traded hands, compared to its average volume of 7,692,339. Wendy’s has a 12-month low of $7.08 and a 12-month high of $16.20. The company has a quick ratio of 0.80, a current ratio of 0.81 and a debt-to-equity ratio of 26.89. The stock has a 50 day moving average of $8.21 and a two-hundred day moving average of $8.96. The company has a market cap of $1.44 billion, a price-to-earnings ratio of 8.02, a PEG ratio of 1.52 and a beta of 0.38.

Analysts Set New Price Targets

A number of analysts have recently commented on WEN shares. TD Cowen dropped their target price on shares of Wendy’s from $11.00 to $9.00 and set a “hold” rating on the stock in a report on Monday, November 10th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $8.50 target price on shares of Wendy’s in a research report on Monday, December 22nd. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $9.00 price objective (down previously from $12.00) on shares of Wendy’s in a report on Wednesday, December 3rd. Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a research report on Wednesday, January 21st. Finally, Stifel Nicolaus set a $9.00 price objective on Wendy’s in a research report on Thursday, February 5th. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, sixteen have assigned a Hold rating and five have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $10.20.

Key Wendy’s News

Here are the key news stories impacting Wendy’s this week:

• Positive Sentiment: Q4 earnings beat consensus on the bottom line (reported $0.16 EPS vs. ~$0.14 expected), which shows some near-term profitability resilience despite year-over-year softness. Wendy’s (WEN) Q4 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Promotional activity and new menu items (e.g., $1 promotions, Frosty flavors) may support traffic short-term but are unlikely to offset the broader sales trends by themselves. Wendy’s celebrating ‘singles’ with $1 burgers on Feb. 15. See deal
• Negative Sentiment: Widespread U.S. weakness: Wendy’s said it will close as many as 350 U.S. locations in H1 2026, reflecting ongoing struggles to attract customers and stabilize store-level performance. Wendy’s says as many as 350 US locations will close in the first half of this year
• Negative Sentiment: Guidance and sales pain: management set FY2026 EPS guidance of $0.56–$0.60 versus a ~$0.86 consensus, and reported declining global systemwide sales and negative U.S. same-restaurant sales — a clear driver of analyst concern. THE WENDY’S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND PROVIDES 2026 OUTLOOK
• Negative Sentiment: Market reaction: shares hit a 52-week low and have tumbled over the past year as investors price in slower traffic, margin pressure and execution risk for the company’s turnaround plan. Highly Shorted Stock Wendy’s Hits 52-Week Low On Weak Outlook

Institutional Investors Weigh In On Wendy’s

Several large investors have recently added to or reduced their stakes in WEN. AQR Capital Management LLC increased its position in Wendy’s by 30.1% during the 2nd quarter. AQR Capital Management LLC now owns 13,843,438 shares of the restaurant operator’s stock valued at $158,092,000 after purchasing an additional 3,205,269 shares during the period. Charles Schwab Investment Management Inc. boosted its stake in shares of Wendy’s by 3.3% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 7,091,847 shares of the restaurant operator’s stock valued at $59,075,000 after purchasing an additional 227,023 shares in the last quarter. State Street Corp increased its holdings in Wendy’s by 1.9% during the fourth quarter. State Street Corp now owns 5,446,335 shares of the restaurant operator’s stock valued at $45,368,000 after buying an additional 102,084 shares during the period. Wells Fargo & Company MN raised its stake in Wendy’s by 258.6% in the fourth quarter. Wells Fargo & Company MN now owns 4,224,648 shares of the restaurant operator’s stock worth $35,191,000 after buying an additional 3,046,517 shares in the last quarter. Finally, Marshall Wace LLP purchased a new stake in Wendy’s during the third quarter worth $36,912,000. 85.96% of the stock is owned by institutional investors.

About Wendy’s

The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.

Founded in 1969 by entrepreneur Dave Thomas in Columbus, Ohio, Wendy’s expanded rapidly through both company-owned and franchised outlets.