The Wendy’s Company (WEN) Q1 2025 earnings summary

Executive summary

• Global systemwide sales declined 1.1% to $3.39B–$3.4B in Q1 2025, with U.S. sales down 2.6%–2.8% and international sales up 8.9%.

• Global same-restaurant sales fell 2.1%, with U.S. down 2.8% and international up 2.3%.

• Opened 68–74 net new restaurants, over 60% internationally, supporting a 2–3% net unit growth target for 2025.

• Digital sales mix reached a record 20.3% of global systemwide sales, up from 16.8% in Q1 2024.

• Returned $173M–$173.5M to shareholders via dividends and share repurchases in Q1.

Financial highlights

• Total revenues were $523.5M, down 2.1% year-over-year; adjusted revenues were $423.1M, down 1.6%.

• Adjusted EBITDA was $124.5M, down 2.6%–$3.3M year-over-year.

• Adjusted EPS was $0.20, down $0.03–13% from the prior year; reported diluted EPS was $0.19, down 5%.

• Free cash flow rose to $68M, up 21.4% year-over-year under a new definition including franchise development fund expenditures.

• Net income was $39.2M, a 6.6%–6.7% decrease year-over-year.

Outlook and guidance

• 2025 outlook: global systemwide sales growth (2.0%) to flat; adjusted EBITDA $530M–$545M; adjusted EPS $0.92–$0.98.

• Net unit growth expected at 2–3% for 2025.

• Free cash flow guidance: $185M–$205M (including franchise fund) or $250M–$270M (excluding it); capital expenditures at $100M–$110M.

• Plan to return up to $325M to shareholders in 2025, up to $40M more than 2024.

• U.S. company-operated restaurant margin expected at 15% ±50 bps, with 2.5% commodity inflation.