Wendy's Q2 Sales Down 3.3% in US, Adjusts Full-Year Guidance

Wendy's Q2 U.S. sales declined 3.3%, impacting overall systemwide sales by 1.8%, but international sales increased 8.7%. The company adjusted its full-year sales and profit projections downward. Analysts forecast an average price target of $13.08, with estimates ranging from $11.00 to $16.00, indicating a 31.28% upside from the current trading price.

Wendy's (WEN) reported a mixed second quarter (Q2) performance, with U.S. sales declining by 3.3% and overall systemwide sales dropping by 1.8%. However, international sales increased by 8.7%, driven by strong growth across all regions. The company attributed the U.S. sales decline to a combination of factors, including lower same-store sales growth and a decrease in household penetration and share of wallet. Despite these challenges, Wendy's remains optimistic about its long-term prospects.

The company's interim CEO, Ken Cook, stated that Wendy's will focus on two key areas for the remainder of the year: chicken and beverages. These categories are hot and have increasing competition. The company needs to succeed in these areas to improve its overall performance.

Wendy's also announced that it had cut its full-year sales and earnings guidance following the Q2 results. The company now expects global systemwide sales growth to decline 3% to 5% year-over-year and reduced its adjusted EPS outlook to between $0.82 and $0.89. Despite the cautious outlook, Wendy's beat expectations in Q2 with adjusted EPS of $0.29 and revenue of $560.9 million.

Analysts forecast an average price target of $13.08, with estimates ranging from $11.00 to $16.00, indicating a 31.28% upside from the current trading price. Wendy's shares remain down 35.92% year-to-date and 41.82% over the past 12 months.

Reference List:
[1] https://www.linkedin.com/news/story/wendys-foresees-steeper-decline-6491508/
[2] https://www.prnewswire.com/news-releases/the-wendys-company-reports-second-quarter-2025-results-302524853.html