Wendy’s Company reported third‑quarter 2025 results with total revenue of $549.5 million, a 3.0% decline from the same period last year. Adjusted earnings before interest, taxes, depreciation and amortization rose 2.1% to $138.0 million, while net income fell 11.8% to $44.3 million. Diluted earnings per share were $0.24, a $0.04 or 20% beat over the consensus estimate of $0.20.
The revenue decline was driven by a 4.7% drop in U.S. same‑restaurant sales, reflecting weaker traffic and higher labor costs in the domestic market. International systemwide sales, however, grew 8.6%, offsetting much of the domestic weakness and supporting the overall top‑line performance.
Adjusted EBITDA growth was largely a result of disciplined cost management and a favorable mix shift toward higher‑margin franchise operations. Operating profit increased 4.8% to $104.3 million, indicating that the company’s pricing strategy and operational efficiencies helped offset the impact of commodity and labor inflation.
The $0.24 EPS beat was achieved through a combination of margin expansion, effective cost controls, and strong international sales momentum. These factors allowed Wendy’s to maintain profitability despite the revenue decline and a modest increase in operating expenses.
Management updated its full‑year outlook, projecting global system‑wide sales to decline 3‑5%, adjusted EBITDA of $505 million to $525 million, and adjusted EPS of $0.82 to $0.89. Net new unit growth is expected to be 2‑3%, with capital expenditures of $135 million to $145 million and free cash flow of $195 million to $210 million. The guidance reflects a cautious view of the consumer environment while signaling confidence in cost discipline and the “Project Fresh” initiative to drive unit growth and profitability.
Ken Cook, interim CEO, highlighted the company’s international strength, noting “8.6% system‑wide sales growth abroad and 54 new restaurants added globally.” He added that operational excellence at company‑operated restaurants is delivering meaningful results and that Project Fresh will continue to enhance franchisee profitability through menu innovation and operational efficiencies.
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