The burger chain's problems attracting customers are getting worse.
Wendy's had a drop in same-restaurant sales in the fourth quarter as weakness in its U.S. business persisted.
WEN heads into Q4 earnings with weak U.S. traffic, falling sales estimates and margin pressure as inflation and store optimization weigh on results.
Wendy's (WEN) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Wendy's launches "Biggie Deals" value menu with customizable options at $4, $6, and $8 as fast-food chains compete for budget-conscious customers.
Wendy's is rated a buy, with turnaround potential after a ~50% stock drop, backed by their new efforts to revitalize the brand. WEN's Project Fresh targets 200–350 underperforming US closures, brand revitalization, and digital/AI initiatives, aiming to restore sales and customer satisfaction. International markets delivered 8.6% sales growth recently, offsetting some of the US weakness, with the solid free cash flow supporting a sustainable 6.6% dividend yield.
The Wendy's Company's stock appears to be bottoming, with valuation metrics looking attractive despite a prolonged slide and recent disappointing earnings. I maintain a hold rating on WEN, citing concerns over aggressive shareholder returns and the need for evidence that turnaround plans are gaining traction. Recent buybacks and high dividends are viewed as unsustainable and potentially harmful to WEN's long-term growth and turnaround prospects.
Although the revenue and EPS for Wendy's (WEN) give a sense of how its business performed in the quarter ended September 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
The Wendy's Company ( WEN ) Q3 2025 Earnings Call November 7, 2025 8:30 AM EST Company Participants Aaron Broholm - Head of Investor Relations Ken Cook - CFO & Interim CEO Suzanne Thuerk - Chief Accounting Officer Conference Call Participants David Palmer - Evercore ISI Institutional Equities, Research Division Jeffrey Bernstein - Barclays Bank PLC, Research Division Brian Mullan - Piper Sandler & Co., Research Division Rahul Krotthapalli - JPMorgan Chase & Co, Research Division Dennis Geiger - UBS Investment Bank, Research Division Christopher O'Cull - Stifel, Nicolaus & Company, Incorporated, Research Division Margaret-May Binshtok - Wolfe Research, LLC Danilo Gargiulo - Sanford C. Bernstein & Co., LLC.
Wendy's logged lower sales and profit in the third-quarter as consumers continue to cut their spending at restaurants.
I'm initiating Wendy's at a buy rating, offering a rebound opportunity despite recent share price declines and macro headwinds. WEN faces lagging U.S. same-store sales, margin pressure, and high leverage, but industry-wide challenges suggest potential for recovery. Turnaround efforts include Project Fresh, menu innovations like 'Tendy's,' and strategic leadership to revitalize U.S. operations and comps.
WEN launches Project Fresh to reignite growth, refocus spending and revitalize its brand amid industry headwinds.