The Wendy's Company has reported a net income of $22.71m in the first quarter
(Q1) of 2026 compared to $39.23m in the same period last year.
The company said the decline in net income stemmed mainly from reduced operating profit and higher interest expenses, with some offset from lower income tax charges.
Operating profit fell 21.9% year-on-year (YoY) from $83.1m in Q1 2025 to $64.9m in Q1 2026.
Total revenue for the quarter that ended 29 March 2026 was $540.63m, compared to $523.47m in the same period a year ago.
Wendy’s linked the revenue growth to higher franchise fees tied to its system optimisation efforts, increased advertising fund revenue and higher company-operated restaurant sales.
However, the company’s quarterly global systemwide sales declined 5.5% to $3.2bn. The company attributed this drop mainly to weaker same-restaurant sales in the US, partly offset by contributions from newly opened locations.
International operations continued to expand, with systemwide sales in overseas markets increasing 6.0% YoY.
Adjusted EBITDA slipped to $111.31m in Q1 2026 from $124.51m in Q1 2025.
Diluted earnings per share and adjusted earnings per share for the quarter were both $0.12.
During the quarter, Wendy’s entered a franchise agreement to develop up to 1,000 restaurants in China, marking a significant planned build-out in that market.
For the full year 2026, the company is forecasting adjusted EBITDA in the range of $460m to $480m and adjusted earnings per share between $0.56 and $0.60.
Wendy’s interim CEO Ken Cook said: “We are taking decisive action to strengthen the Wendy's system and improve performance.
“During the first quarter, we introduced a new Biggie platform, upgraded our premium hamburgers, and launched new chicken sandwiches. Additionally, our focus on operational excellence is driving improvement in order accuracy and key customer satisfaction metrics.
“While our first quarter results reflect a business in the early stages of a turnaround, we are making progress to improve our US business and are confident in the direction we are heading."
