The Wendy’s Company (WEN) Q2 2026 earnings summary

Executive summary

• Leadership acknowledged underperformance, with traffic declines, eroded value proposition, and franchisee pressure, but expressed optimism for a turnaround based on brand strengths and a focused strategy.

• New leadership is implementing a turnaround plan focused on menu quality, marketing, operational excellence, digital experience, and restaurant growth.

• Revenues for Q2 2026 were $571 million, with global systemwide sales of $3.4 billion, reflecting a 6.5% year-over-year decline driven by an 8.2% drop in the U.S. and partially offset by 3.4% international growth.

• Net income for Q2 2026 was $32.6 million, down from $55.1 million in Q2 2025, with EPS at $0.17 compared to $0.29 last year.

• Digital sales rose to 23.7% of global systemwide sales, up from 20.5% in Q2 2025.

Financial highlights

• Global systemwide sales decreased 6.5% year-over-year in Q2; U.S. same-restaurant sales declined 7.0%-8.2%, international same-restaurant sales fell 2.3%, while international systemwide sales grew 3.4%.

• Adjusted revenue was $443.2 million, down 1.4% year-over-year; adjusted EBITDA was $124.1 million, down $22.5 million.

• Adjusted EPS was $0.18 for the quarter, down 37.9% year-over-year.

• U.S. company-operated restaurant margin declined to 13.8% from 16.2% due to commodity and labor inflation and lower traffic.

• Free cash flow for the first half was $120.3 million, up $10.8 million year-over-year, driven by lower cash taxes and capex.

Outlook and guidance

• 2026 financial outlook has been withdrawn as leadership reassesses business opportunities and capital deployment.

• Anticipates continued traffic headwinds and no year-over-year systemwide sales growth in Q3 or Q4.

• Expects ongoing pressure on company-operated restaurant margin and adjusted EBITDA in the second half due to sales deleverage, commodity inflation (5%-6%), and increased G&A.

• Management plans to manage costs through selective menu price increases and operational efficiencies.

• Dividend payout reduced to $0.07 per share quarterly to provide flexibility for turnaround investments.