Quarterly ResultMay 8, 2026, 07:11 AM
Wendy's Q1 Global Sales Down 5.5%; Net Income $22.7M; China Deal
AI Summary
Wendy's Company reported mixed first-quarter 2026 results, with global systemwide sales decreasing 5.5% to $3.2 billion and net income falling 42.1% to $22.7 million. This was primarily due to lower U.S. same-restaurant sales, commodity and labor inflation, and increased G&A expenses. However, international systemwide sales grew 6.0%, and the company announced a significant franchise agreement to develop up to 1,000 restaurants in China over the next decade. Wendy's also reaffirmed its full-year 2026 financial outlook, indicating confidence in its turnaround efforts.
Key Highlights
- Global systemwide sales decreased 5.5% to $3.2 billion in Q1 2026.
- International systemwide sales grew 6.0% in Q1 2026.
- Reported net income was $22.7 million, a 42.1% decrease from Q1 2025.
- Adjusted EBITDA was $111.3 million, down 10.6% from Q1 2025.
- Reported diluted earnings per share and adjusted earnings per share were $0.12.
- Entered a franchise agreement to build up to 1,000 restaurants across China over 10 years.
- Reaffirmed full-year 2026 outlook for global systemwide sales growth (approximately flat), adjusted EBITDA ($460-$480 million), and adjusted EPS ($0.56-$0.60).
- Declared a regular quarterly cash dividend of $0.14 per share, payable June 15, 2026.