Wendy's Q2 Earnings Beat Estimates, Raises Dividend, Cuts Outlook

Wendy's reported Q2 adjusted EPS of 29 cents, beating the consensus estimate of 26 cents. Quarterly sales of $560.9mln were down 1.7% YoY, while international systemwide sales rose 8.7%. The company trimmed its FY25 adjusted EPS outlook to 82-89 cents and adjusted EBITDA to $505-525mln. Global systemwide sales growth is expected to decline 5-3%. WEN shares are trading higher by 2.36% to $10.20.

Wendy's (WEN) reported its Q2 earnings for the period ended June 2025, with adjusted EPS of 29 cents, surpassing the consensus estimate of 26 cents. Quarterly sales declined 1.7% year-over-year (YoY) to $560.9 million, while international systemwide sales rose 8.1% YoY to $528.9 million. The company also trimmed its full-year 2025 adjusted EPS outlook to a range of 82-89 cents and adjusted EBITDA to $505-525 million. Global systemwide sales growth is expected to decline 5-3%. Shares of Wendy's are trading higher by 2.36% to $10.20 as of July 2, 2025 [1].

The company's adjusted EPS of 29 cents beat Wall Street's expectations by 16%, marking the second consecutive quarter where Wendy's has exceeded consensus estimates. This quarterly report represents an earnings surprise of +16.00% [2].

Wendy's reported a year-over-year decline in same-restaurant sales in the U.S. by 3.6%, which was slightly worse than the average estimate of -3% based on eight analysts. However, the company's performance was stronger in its international operations, with same-restaurant sales rising by 1.8%, surpassing the average estimate of 2.6% [1].

The company's revenue from company-operated restaurants declined by 1.9% YoY to $232.85 million, while franchise rental income and franchise royalty revenue and fees also saw slight declines. The number of restaurants remained stable, with 7,334 restaurants in the U.S. and 1,367 internationally [1].

Wendy's management cited the company's continued expansion as a key factor in its performance. The company added 44 new restaurants in the second quarter, bringing the total additions for the first half of the year to 118 [3].

Looking ahead, Wendy's expects global systemwide sales growth to decline by 5-3% in the fiscal year 2025. The company's full-year adjusted EPS guidance was lowered to a midpoint of 86 cents, and adjusted EBITDA was adjusted to $515 million at the midpoint [3].

Wendy's stock has underperformed the broader market so far this year, with shares losing about 38.9% since the beginning of the year compared to the S&P 500's gain of 7.8%. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term [2].

References:
[1] https://finance.yahoo.com/news/wendys-wen-q2-earnings-taking-010001165.html
[2] https://finance.yahoo.com/news/wendys-wen-tops-q2-earnings-121002689.html
[3] https://finance.yahoo.com/news/wendys-nasdaq-wen-beats-q2-110850226.html