Operations
Wendy's sales fall but beat expectations in Q3
November 7, 2025
Wendy's reported a global systemwide sales decrease in Q3 due to lower sale-restaurant sales in the U.S., partially offset by contributions from net new restaurant openings and same-restaurant sales growth in the International segment.
Wendy's based its decrease in total revenues on lower advertising funds and lower franchise royalty revenue, partially offset by an increase in franchisee feeds. The burger brand also based the decrease in U.S. company-operated margins on commodity inflation, a decline in traffic and labor rate inflation.
"Third quarter results were in line with our expectations, reflecting continued strength in our international business with 8.6% systemwide sales growth, the addition of 54 new restaurants globally and adjusted EBITDA growth," said Ken Cook, Interim CEO.
"In the U.S. our actions to drive operational excellence at Company-operated restaurants are delivering meaningful results. Comparable sales at Company-operated restaurants outperformed the system by 4% during the third quarter and a renewed focus on execution resulted in the successful launch of our new chicken tenders. We also launched Project Fresh, a comprehensive turnaround plan structured around brand revitalization, operational excellence, system optimization and capital allocation. We are acting with urgency to execute the operational and brand initiatives to drive AUV growth in the U.S., creating value for our franchisees and shareholders."
Wendy's reported:
- Global systemwide sales were $3.5 billion, a decrease of 2.6%.
- International systemwide sales grew 8.6% with growth across all regions.
- Opened 54 new restaurants, bringing total additions to 172 through the end of the third quarter.
- Net income was $44.3 million and adjusted EBITDA increased 2.1% to $138.0 million.
- Reported diluted earnings per share was $0.23 and adjusted earnings per share decreased 4.0% to $0.24.
- Returned $40.7 million to shareholders through dividends and share repurchases.
- Increased free cash flow outlook by $35 million at the midpoint of the expected range.
Wendy's has more than 7,000 restaurants.
