#USA #financial results #Dublin #Wendy's #Q2 2025

Wendy's Company Reports Second Quarter 2025 Results

The Wendy's Company (Nasdaq: WEN) has announced its financial outcomes for the second quarter of 2025, ending on June 29. The results present a mixed bag of growth in international markets while facing challenges domestically.

In the recent report, Wendy's revealed that its global systemwide sales hit $3.7 billion, representing a decrease of 1.8% compared to the previous quarter. Despite this, international markets showed strong potential with an 8.7% growth in systemwide sales across all regions. The company has been strategic about expanding its footprint by opening 44 new restaurants, bringing the total to 118 for the first half of the year—projecting a full-year growth of 2% to 3%.

Ken Cook, Interim CEO, stated, "We are excited about the continued expansion, particularly in our international segments, which is driving notable sales growth. However, addressing the performance in the U.S. market remains a priority for us."

Key Operational Highlights:

• - Restaurant Openings: In Q2 alone, Wendy's opened 44 new restaurants, contributing to enhanced global presence.
• - Earnings per Share: The diluted earnings per share stood at $0.29, marking a notable increase of 7.4%.
• - Shareholder Returns: Wendy's returned $88.7 million to shareholders in the form of dividends and share repurchases, demonstrating its commitment to enhancing shareholder value.

Performance Analysis:

The results illustrated a decline in U.S. systemwide sales, primarily due to lower traffic, with a reported 3.3% drop in sales during this quarter. Despite the difficulties faced, same-restaurant sales growth surged in the international segment with reported increases across the board. The company is focusing on enhancing relationships with franchisees and improving marketing strategies to achieve better overall performance in the domestic market.

Throughout the year, Wendy's has maintained a solid revenue strategy, although total revenues for the quarter reported a 1.7% decline, correlating with the reduced U.S. sales. The decreased revenue resulted from lower franchise royalty revenue and advertising funds revenue. Yet, the company did manage to maintain operational profitability with an operating profit of $104.3 million, representing a 4.8% increase.

2025 Outlook:

Wendy's has reiterated its guidance for the year 2025, anticipating global sales growth between (5.0%) and (3.0%), and confirmed its adjusted earnings per share forecast between $0.82 to $0.89. As part of its strategic initiatives, Wendy's is also focusing on continuing the rollout of its franchise development fund and increasing its investments in international expansion.

In a recent statement, Cook said, "We have a lot of work ahead of us in refining our strategies and ensuring that our operations align with the expectations of customers and stakeholders. We believe that these adjustments will lead to more robust performances moving forward."

Call to Action:

To discuss the results and further insights, Wendy's will hold a conference call at 8:30 a.m. ET today, which can be accessed through its Investor Relations website.

In conclusion, while the results present both challenges and opportunities, Wendy's remains poised to adapt and grow, focusing on partnership with its franchisees and enhancing customer experiences across all locations. As it continues to navigate the changing market landscape, the focus will remain on innovation and meeting consumer demands effectively.