Wendy’s (NASDAQ:WEN) Posts Quarterly Earnings Results

Posted by Brian Himes on Nov 5th, 2026

Wendy’s (NASDAQ:WEN – Get Free Report) issued its earnings results on Thursday. The restaurant operator reported $0.13 EPS for the quarter, beating the consensus estimate of $0.09 by $0.04, FiscalAI reports. The company had revenue of $435.62 million during the quarter, compared to analysts’ expectations of $531.28 million. Wendy’s had a net margin of 5.72% and a return on equity of 115.31%. The business’s revenue for the quarter was down .5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.24 EPS.

Here are the key takeaways from Wendy’s’ conference call:

U.S. same-restaurant sales fell 5.7% in Q3, with traffic down 11.9%; adjusted EBITDA declined $24.6 million year over year to $113.4 million. Sales trends improved 130 basis points sequentially, but management said results remain unsatisfactory.
Wendy’s made breakfast optional for U.S. restaurants, saying franchisees can exit unprofitable locations and focus resources on other dayparts. The company estimates the change could add up to $200 million in restaurant-level EBITDA across company and franchise restaurants.
Delivery tests generated low-double-digit to 20% sales lifts, and more than 90% of U.S. franchise restaurants are now participating in delivery promotions. Management also cited early improvement in sales trends during Q3 and into Q4, while cautioning that the turnaround is still in its early stages.
International systemwide sales grew 3.5%, with 30 new restaurants opened in Q3 and 84 opened year to date through the quarter. Management highlighted continued international development opportunities, while noting same-restaurant sales weakness in Canada.
Wendy’s ended the quarter with about $413 million in cash and net debt leverage of 5.2x, and expects leverage to remain elevated in the near term. Free cash flow through the first three quarters was $174.2 million, down $21.4 million year over year.

Wendy’s Trading Up 3.8%

NASDAQ:WEN traded up $0.29 on Thursday, reaching $7.94. The company’s stock had a trading volume of 12,069,191 shares, compared to its average volume of 10,958,167. Wendy’s has a 1-year low of $5.94 and a 1-year high of $10.12. The company has a debt-to-equity ratio of 27.95, a quick ratio of 1.88 and a current ratio of 1.90. The firm has a market cap of $1.51 billion, a PE ratio of 12.03, a PEG ratio of 1.33 and a beta of 0.37. The business’s 50-day moving average price is $6.97 and its two-hundred day moving average price is $7.37.

Wendy’s Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Tuesday, December 1st will be issued a dividend of $0.07 per share. The ex-dividend date is Tuesday, December 1st. This represents a $0.28 annualized dividend and a yield of 3.5%. Wendy’s’s payout ratio is currently 42.42%.

Key Wendy’s News

Here are the key news stories impacting Wendy’s this week:

Positive Sentiment: Wendy’s reported third-quarter EPS of $0.13, above the roughly $0.09 analyst consensus. It also introduced “Dave’s Way,” a multi-year strategy aimed at increasing traffic and market share while improving restaurant profitability. Third-quarter results
Positive Sentiment: The plan includes making breakfast location-specific, optimizing the restaurant portfolio, and a letter of intent to acquire up to 163 Meritage-operated Wendy’s restaurants—moves that could improve profitability if executed successfully. Meritage locations
Neutral Sentiment: The company declared a quarterly dividend of $0.07 per share, equivalent to $0.28 annually and a stated yield of 3.5%. Dividend announcement
Negative Sentiment: Despite the EPS beat, earnings fell from $0.24 a year earlier, and the company’s turnaround is intended to address pressure on traffic and sales. That puts the focus on whether the new initiatives can reverse the trend. Turnaround and quarterly performance
Negative Sentiment: Wendy’s rejected a $7.35-per-share cash proposal from a Trian-led group, saying it undervalued the company, and adopted a limited-duration shareholder rights plan. Rejecting the offer preserves the standalone strategy but removes a potential takeover catalyst and leaves execution risk with the company. Buyout proposal rejection

Wall Street Analyst Weigh In

A number of research firms recently commented on WEN. BMO Capital Markets reiterated a “market perform” rating on shares of Wendy’s in a report on Monday, August 10th. UBS Group reduced their target price on Wendy’s from $8.00 to $6.50 and set a “neutral” rating on the stock in a report on Monday, October 26th. Stephens decreased their target price on Wendy’s from $8.00 to $7.00 and set an “equal weight” rating for the company in a research report on Thursday, October 15th. Citigroup lowered their price target on Wendy’s from $8.25 to $6.75 and set a “neutral” rating for the company in a research note on Friday, October 23rd. Finally, Weiss Ratings reiterated a “sell (d+)” rating on shares of Wendy’s in a research report on Thursday, October 15th. One analyst has rated the stock with a Buy rating, eleven have issued a Hold rating and six have given a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Reduce” and an average target price of $7.42.

Read Our Latest Stock Analysis on Wendy’s

Wendy’s Company Profile

(Get Free Report)

The Wendy’s Company (NASDAQ: WEN) operates and franchises quick-service restaurants under the Wendy’s brand. Its restaurants are known for hamburgers made with fresh, never-frozen beef, along with chicken sandwiches, salads, fries, breakfast items, desserts, and beverages.

Founded by Dave Thomas in 1969, Wendy’s has grown into an international restaurant chain with locations primarily in the United States and Canada, as well as select markets in other countries. The company’s restaurant system includes both company-operated and franchised locations.

In addition to its restaurant operations, Wendy’s supports customers through digital ordering, delivery, loyalty programs, and mobile applications.