Wendy's 2025 Financial Results & 2026 Outlook

By Chris Stiles • Friday, February 13 10:48 • Permanent Link

The Wendy’s Company has reported its fourth quarter and full-year 2025 results, along with its 2026 outlook. Here are the key figures:

Systemwide Sales: Global systemwide sales for the fourth quarter were $3.4 billion, a decrease of 8.3% compared to the previous year. Full-year global systemwide sales were $14.0 billion, marking a decrease of 3.5% from the prior year. * International systemwide sales, however, saw growth of 6.2% in the fourth quarter and 8.1% for the full year.

Restaurant Openings: * The company added 34 net new restaurants in the fourth quarter, totaling 157 net new restaurants for the full year, an increase of 2.2%.

Financial Performance: Reported net income for the fourth quarter was $26.5 million, and for the full year, it was $165.1 million. Adjusted EBITDA for the fourth quarter and full year were $113.3 million and $522.4 million, respectively. Reported diluted earnings per share for the fourth quarter and full year were $0.14 and $0.85, respectively, while adjusted earnings per share were $0.16 and $0.88, respectively. Net cash provided by operating activities for the full year was $344.5 million, and free cash flow for the full year was $205.4 million.

Dividends and Share Repurchases: * The company returned $329.6 million to shareholders through dividends and share repurchases for the full year, representing an increase of over $48 million from the previous year.

Outlook for 2026: The company expects global systemwide sales growth to be approximately flat in 2026. It anticipates adjusted EBITDA to range between $460 million and $480 million and adjusted earnings per share to be in the range of $0.56 to $0.60. * Capital expenditures and franchise development fund investments are expected to be in the range of $120 million to $130 million, and free cash flow is projected to be between $190 million and $205 million.

Following these announcements, the company's shares moved -2.58%, and are now trading at a price of $8.32. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.