Wendys Q1 EPS and EBITDA beat estimates on international growth

Wendy's

08/05/2026 12:10

Overview

U.S. fast-food chain's Q1 adjusted revenue missed analyst expectations, global systemwide sales fell 5.5%

Adjusted EPS and adjusted EBITDA for Q1 both beat analyst expectations

Company signed franchise deal to build up to 1,000 restaurants in China

Outlook

Wendy's reaffirms 2026 global systemwide sales growth to be approximately flat

Company expects 2026 adjusted EBITDA of $460 mln to $480 mln

Wendy's sees 2026 adjusted EPS between $0.56 and $0.60

Result Drivers

U.S. SALES DECLINE - Co said global systemwide sales fell due to lower U.S. same-restaurant sales, partially offset by new restaurant openings

MARGIN PRESSURE - Decrease in U.S. company-operated restaurant margin attributed to lower traffic, commodity inflation, and labor rate inflation

INTERNATIONAL GROWTH - International systemwide sales rose 6.0%, supported by expansion in key growth markets

Company press release: ID:nPn5ybLMYa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$540.60 mln
Q1 Adjusted Revenue
Miss
$432.30 mln
$517.97 mln (20 Analysts)
Q1 Adjusted EPS
Beat
$0.12
$0.10 (26 Analysts)
Q1 EPS
$0.12
Q1 Adjusted EBITDA
Beat
$111.30 mln
$102.66 mln (22 Analysts)
Q1 Global Systemwide Sales Growth
-5.50%


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 20 "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 15.1% above its May 7 closing price of $6.95

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

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.)