The Wendy’s Company (WEN) Q2 2025 earnings summary

Executive summary

• Global systemwide sales declined 1.8%–1.9% year-over-year in Q2 2025, with U.S. sales down 3.6% and international sales up 8.7%.

• Net income for Q2 2025 was $55.1 million, with adjusted EPS up 7.4% to $0.29 and digital sales surpassing 20% of systemwide sales.

• 26 net new restaurants were added in Q2, totaling 118 year-to-date, supporting a 2–3% full-year net unit growth target.

• Over $88 million was returned to shareholders in Q2 via dividends and share repurchases.

• The company remains focused on operational excellence, franchisee partnership, and global expansion.

Financial highlights

• Q2 2025 revenues were $560.9 million, down 1.7% year-over-year; adjusted EBITDA rose 2.5% to $146.6 million.

• Adjusted EPS increased 7.4% to $0.29; operating profit rose 4.8% to $104.3 million.

• Free cash flow for the first half of 2025 was $109.5 million, with $262.2 million returned to shareholders year-to-date.

• U.S. company-operated restaurant margin was 15.6%–16.2%, down 20–30 bps year-over-year.

• Cash and equivalents totaled $330.1 million at quarter-end.

Outlook and guidance

• Full-year 2025 global systemwide sales are expected to decline 3%–5%, with adjusted EBITDA projected at $505–$525 million and adjusted EPS of $0.82–$0.89.

• Net unit growth guidance of 2%–3% is maintained, with strong international performance anticipated.

• Free cash flow, including franchise development fund, is expected at $160–$175 million; capital expenditures and franchise development fund investments projected at $165–$175 million.

• U.S. company-operated restaurant margin is forecast at 14% ±50 bps, reflecting 4% commodity inflation.

• Management anticipates continued labor inflation and plans to manage costs through menu price increases and operational efficiencies.