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

Executive summary

• Global systemwide sales declined 8.3% in Q4 2025, with U.S. sales down 10.5% and international sales up 6.2%.

• Project Fresh, a turnaround strategy, is underway with four pillars: brand revitalization, operational excellence, system optimization, and disciplined capital allocation.

• International business remains a strong growth engine, with 21 consecutive quarters of sales growth and expansion into new markets.

• 157 net new restaurants were added in 2025, a 2.2% increase in total units, with 59 new international restaurants opened in Q4.

• $329.6M was returned to shareholders via dividends and share repurchases in 2025.

Financial highlights

• Adjusted EBITDA for Q4 2025 was $113.3M, down 17.6% year-over-year; adjusted EPS was $0.16, a 36% decrease year-over-year.

• Global systemwide sales declined 8.3% in Q4 and 3.5% for the year, with U.S. same-restaurant sales as the main drag.

• U.S. company-operated restaurant margin fell to 12.7% in Q4 (down 4.3 pts) and 14.2% for the year (down 1.8 pts).

• Free cash flow for the year was $205.4M, down 13.6% year-over-year.

• $330M was returned to shareholders via dividends and buybacks.

Outlook and guidance

• 2026 is positioned as a rebuilding year, with global systemwide sales expected to be flat year-over-year.

• Adjusted EBITDA guidance for 2026 is $460–$480M; adjusted EPS is $0.56–$0.60.

• Free cash flow is projected at $190–$205M; capital expenditures and franchise development fund investments planned at $120–$130M.

• System optimization, including 5%-6% U.S. restaurant closures, is expected to have a 4% negative impact on global systemwide sales.

• U.S. same-restaurant sales are expected to improve sequentially through 2026.