The Wendy’s Company (WEN) Q4 2025 earnings summary

Executive summary

• Global systemwide sales declined 8.3% in Q4 2025 and 3.5% for the year, mainly due to U.S. weakness, while international sales grew 6.2% in Q4 and 8.1% for the year.

• U.S. same-restaurant sales fell 11.3% in Q4, while international SRS rose 4.3% in Q4 and 1.3% for the year.

• Project Fresh turnaround plan launched, focusing on brand revitalization, operational excellence, system optimization, and disciplined capital allocation.

• 157 net new restaurants were added in 2025, a 2.2% increase in total units, with international net unit growth over 9%.

• $330 million was returned to shareholders via dividends and share repurchases, up $48 million from prior year.

Financial highlights

• Q4 adjusted EBITDA was $113.3 million, down 17.6% year-over-year; full year adjusted EBITDA was $522.4 million.

• Adjusted EPS for Q4 was $0.16, a 36% decrease year-over-year; full year reported diluted EPS was $0.85, down 10.5%.

• Full year free cash flow reached $205.4 million, down 13.6% year-over-year.

• Q4 adjusted revenue was $439.6 million, down $19.7 million year-over-year; full year revenues were $2.18 billion, down 3.1%.

• U.S. company-operated restaurant margin fell to 12.7% in Q4 and 14.2% for the year.

Outlook and guidance

• 2026 global systemwide sales growth expected to be approximately flat, with U.S. same-restaurant sales improving sequentially.

• Adjusted EBITDA guidance: $460 million–$480 million; adjusted EPS: $0.56–$0.60; free cash flow: $190 million–$205 million.

• Capital expenditures and franchise development fund investments projected at $120 million–$130 million.

• U.S. company-operated restaurant margin expected at 13% ±50 bps, with 4% labor and commodity inflation.

• System optimization (closures and hour adjustments) to have a 4% negative impact on global systemwide sales.