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Wendy's Reports 2025 Financial Results

On February 13, 2026, The Wendy's Company (NASDAQ: WEN) announced its financial outcomes for the fourth quarter and overall performance for the year ending December 28, 2025. The company reported significant fluctuations in sales figures, particularly highlighting the challenges faced domestically while also recognizing growth in international markets.

Fourth Quarter and Annual Performance

During Q4, global systemwide sales reached $3.4 billion, representing an 8.3% decrease compared to the same quarter in the previous year. Over the entire year, revenues amounted to $14.0 billion, marking a 3.5% decline. However, it’s noteworthy that international sales demonstrated resilience, with a growth of 6.2% in Q4 and 8.1% for the full year, supported by the addition of 121 net new restaurants globally.

Wendy's interim CEO, Ken Cook, conveyed a sense of cautious optimism, stating, "Our fourth-quarter performance met our expectations, reflecting the challenges we anticipated." He further emphasized the ongoing efforts in their Project Fresh turnaround initiative, aimed at improving U.S. operations while expanding international growth.

Key Financial Highlights

The net income for the fourth quarter was reported at $26.5 million, translating to a diluted earnings per share of $0.14. For the entire year, net income was down to $165.1 million or $0.85 per share. Adjusted figures showed an adjusted EBITDA of $113.3 million for the quarter and $522.4 million for the year. The company also generated a free cash flow of $205.4 million, affirming its solid liquidity position.

In addition to the positive performance metrics from international markets, Wendy's has demonstrated prudent fiscal management, returning $329.6 million to shareholders through dividends and share repurchases over the past year. This amount represented a notable increase of over $48 million from the previous year’s figures.

Expansion Efforts

Despite the obstacles in the domestic landscape, Wendy's unveiled that it successfully opened a total of 157 new restaurants throughout 2025, which is an increase of 2.2% from the previous year. This ongoing expansion strategy underpins the company's belief in its brand strength and commitment to the market.

Cook mentioned, "We are encouraged by the operational improvements we've driven at U.S. Company-operated restaurants and our marketing calendar for 2026, which includes new everyday Biggie value offerings and forthcoming innovations across our core menu."

2026 Outlook

Looking ahead, Wendy's anticipates a stabilizing trend for the upcoming year. The company expects global systemwide sales growth to be relatively flat while forecasting adjusted EBITDA between $460 million and $480 million, along with adjusted earnings per share estimations between $0.56 and $0.60. With planned capital expenditures ranging between $120 million and $130 million, the outlook appears cautiously optimistic.

The company has stressed the urgency of executing its Project Fresh overhaul to ensure long-term success, indicating that efforts will focus on strengthening performance across all operations.

To further discuss these outcomes and strategies, Wendy's will host a conference call at 8:30 a.m. ET on February 13, available via telephone and webcast.

Conclusion

In summary, while 2025 presented challenges for The Wendy's Company, particularly concerning domestic operations, the resilience observed in international markets combined with strategic efforts like Project Fresh provides a solid foundation as the company prepares for the year ahead. With Wendy's commitment to evolving their offerings and operational strategies, they aim to navigate the competitive landscape effectively, continuing to engage their customer base and expand their global footprint.