The Wendys 2025 Q2 Earnings Mixed Performance as Net Income Rises Slightly

The Wendy's reported fiscal 2025 Q2 earnings on August 8, 2025, showing mixed results. While revenue declined, earnings per share and net income both rose. The company provided full-year guidance in line with expectations, maintaining its focus on long-term strategic goals and international growth.

The Wendy's reported a 1.7% decline in total revenue to $560.93 million in fiscal 2025 Q2, compared to $570.73 million in the same period last year. Despite the revenue drop, the company showed strong earnings growth, with net income reaching $55.11 million in 2025 Q2, a 0.9% increase from $54.64 million in 2024 Q2. Meanwhile, EPS rose 7.4% to $0.29 from $0.27.

Despite the earnings beat, the strategy of buying Wendy's shares 30 days after earnings over the past three years has underperformed. The backtested CAGR was -3.96%, with a total return of -11.04% compared to a 47.43% benchmark return. This resulted in an excess return of -58.47%. While the strategy showed no losses due to the short holding period and a maximum drawdown of 0.00%, the Sharpe ratio of -0.53 and volatility of 7.53% highlight the moderate risk involved.

Ken Cook, Interim CEO of The Wendy's Company, acknowledged the underperformance of the U.S. business due to shifting consumer behavior and a tough competitive landscape, but emphasized a continued focus on execution and performance. He highlighted progress in international markets with 8.7% sales growth in Q2 and improvements in U.S. customer satisfaction. Cook also announced new initiatives, including Frosty Swirls and a collaboration with Netflix, and expressed confidence in data analytics and global expansion.

The Wendy's Company expects full-year 2025 global system-wide sales to decline between 3% and 5%. Adjusted EBITDA is forecast at $505 million to $525 million, and adjusted EPS is expected to range from $0.82 to $0.89. The company plans to return approximately $325 million to shareholders in 2025 through buybacks and dividends.

The Nigerian newspaper Punch reported on various developments on August 8, 2025, highlighting political and social issues. It detailed INEC’s call for legal backing to facilitate inmate voting rights and covered the release of Sowore from police custody, who criticized the police. In politics, the Abia State PDP mocked a former deputy governor for resigning from the party. The business section noted a decline in Nigeria's FDI by 70% in three months and Sterling HoldCo’s investment in company shares. A significant story involved the arrest of a ritualist in Akwa Ibom for allegedly aiding armed robbers with charms.