The Wendy’s Company (WEN) investor relations material

Executive summary

• Dave’s Way is a multi-year strategy targeting higher traffic and market share, stronger restaurant profitability, and healthier franchise portfolios, with menu, marketing, operations and digital initiatives underway.

• Q3 sales trends improved sequentially, but results remained pressured by U.S. traffic weakness and higher costs; management described the turnaround as early-stage.

Financial highlights

• Q3 revenue was $547.0M versus $549.5M; adjusted revenue was $435.6M versus $442.5M, down 1.6% YoY.

• Net income fell to $15.1M from $44.3M and diluted EPS to $0.08 from $0.23; operating profit was $55.8M versus $92.0M.

• Adjusted EBITDA declined 17.8% to $113.4M; adjusted EPS was $0.13 versus $0.24.

• 9M revenue rose to $1,658.2M from $1,633.9M, while operating profit fell to $200.0M from $279.4M and net income to $70.4M from $138.6M.

• Q3 G&A was $73.1M, up $15.2M YoY; $11.9M of strategic initiative costs was excluded from adjusted EBITDA and adjusted EPS.

Outlook and guidance

• No formal Q4 guidance; U.S. same-restaurant sales improved to -5.7% from the previously expected ~-7% trend, and early Q4 performance was described as similar to Q3.

• A refreshed core menu is planned for 2027; menu testing, marketing, delivery participation and restaurant execution are underway, with leading indicators to precede earnings improvement.

• Location-specific breakfast changes could unlock up to $200M in restaurant-level EBITDA across company and franchise restaurants; outcomes depend on local decisions and execution.

• Labor and commodity inflation is expected to continue through 2026; selective pricing, product mix and operational execution are planned mitigants.