Refile: Wendy's Q2 adj revenue misses on decrease in global systemwide sales

Wendy's

07/08/2026 12:11

Corrects to add dropped apostrophe in company name

Overview
U.S. fast-food chain's Q2 adjusted revenue missed, while adjusted EPS and EBITDA beat expectations
Global systemwide sales fell 6.5%, driven by lower U.S. same-restaurant sales and fewer restaurants
Company withdrew 2026 outlook and cut dividend to fund turnaround plan under new leadership

Outlook
Wendy's withdraws its 2026 financial outlook as new leadership assesses business opportunities

Result Drivers
U.S. SALES DECLINE - Drop in global systemwide sales was primarily driven by lower U.S. same-restaurant sales and fewer U.S. restaurants
MARGIN PRESSURE - Lower U.S. company-operated restaurant margin was due to commodity inflation, declining traffic, and labor rate inflation, partially offset by higher average check and labor efficiencies
HIGHER ADMIN COSTS - Increased general and administrative expense resulted from investments in professional services and employee compensation

Company press release: ID:nPn8Gj3yka

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$570.60 mln
 
Q2 Adjusted Revenue
Miss
$443.20 mln
$557.19 mln (17 Analysts)
Q2 Adjusted EPS
Beat
$0.18
$0.16 (22 Analysts)
Q2 EPS
 
$0.17
 
Q2 Adjusted EBITDA
Beat
$124.10 mln
$121.83 mln (20 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 17 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the restaurants & bars peer group is "buy"
Wall Street's median 12-month price target for Wendy's Co is $8.00, about 8.3% above its August 6 closing price of $7.39
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 4 - McDonald's US sales growth slows as value push falters
Aug 6 - Restaurant Brands International Q2 system-wide sales rise, led by Burger King
Aug 5 - Dine Brands beats Q2 revenue estimates, maintains 2026 guidance

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)