The Wendy's Company is upgraded to Strong Buy, trading at a deep discount despite robust cash flows and a well-covered 8.25% dividend yield. WEN's turnaround strategy includes 5–6% U.S. store closures in 2026, international expansion, and a focus on marketing, value, and quality to drive recovery. 2026 guidance is conservative: flat global sales, Adjusted EBITDA of $460–$480M, and free cash flow of $190–$205M, supporting a ~54% payout ratio.
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The investor's Trian hedge fund firm has spoken with possible financing sources, co‑investors, and strategic partners about potential deals including an acquisition or other major transactions that could give the firm control of Wendy's.
The Wendy's Company posted its worst U.S. same-store sales in 20 years, lagging peers due to value platform missteps and execution delays. WEN is closing 5–6% of underperforming U.S. stores, recalibrating its Biggie Bag pricing, and prioritizing dividends over debt-funded buybacks. FY 2026 guidance anticipates further EBITDA and EPS declines, with systemwide sales pressured by closures but partially offset by international growth.
Wendy's NASDAQ: WEN stock is down significantly from its highs, offering a deep value opportunity for investors. Trading at 12X its current-year earnings and under eight times the 2030 forecast, the valuation suggests a triple-digit upside relative to industry leaders.
Wendy's planned restaurant closures target underperforming locations in an effort to boost sales and refocus its strategy on everyday value.
Wendy's is moving ahead with its plans to close hundreds of restaurants, amounting to between 5% and 6% of its total stores in the U.S., according to its fourth-quarter earnings report.
The Wendy's Company (WEN) Q4 2025 Earnings Call Transcript
Wendy's says it plans to close hundreds of US locations. The burger chain is struggling with declining sales.
The headline numbers for Wendy's (WEN) give insight into how the company performed in the quarter ended December 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Wendy's (NASDAQ: WEN) delivered a mixed fourth quarter as the fast-food chain navigates mounting cost pressures and accelerating traffic declines.
Wendy's (WEN) came out with quarterly earnings of $0.16 per share, beating the Zacks Consensus Estimate of $0.14 per share. This compares to earnings of $0.25 per share a year ago.