Highlights

  • Second quarter 2026 total revenues were $570.6 million, and net income was $32.6 million, or $.17 per share.
  • U.S. systemwide same-restaurant sales were (7.0)% in the second quarter, and the restaurant count was 7,180 at June 28, 2026.
  • On August 7, 2026, the company announced a $.07 per share dividend, after paying $.14 in March and June.
  • On the call, management said it is withdrawing its 2026 outlook and does not anticipate repurchasing shares in 2026.

The Wendy's Company (NASDAQ:WEN) shares were trading at USD 7.05 on October 28, 2026, up 14.82%, with a relative volume at time of 7.02. The restaurant company filed its Form 10-Q for the quarter ended June 28, 2026 on August 7, announced a $.07 per share dividend that day, and withdrew its 2026 financial outlook on its second quarter call.

The Wendy's Company is incorporated in Delaware and has its principal executive offices in Dublin, Ohio. It operates and franchises Wendy's restaurants and reports three segments: Wendy's U.S., Wendy's International and Global Real Estate & Development. As of June 28, 2026, the system comprised 7,180 restaurants, with 5,724 in the U.S., of which 420 were Company-operated and 5,304 were franchised, and 1,456 in 38 foreign countries and U.S. territories.

Second Quarter 2026 Results

For the second quarter ended June 28, 2026, total revenues were $570.6 million, compared with $560.9 million in the second quarter of 2025. Sales were $240.0 million, franchise royalty revenue and fees were $149.8 million, franchise rental income was $53.4 million and advertising funds revenue was $127.4 million.

Operating profit was $79.3 million, compared with $104.3 million. Net income was $32.6 million, compared with $55.1 million, and basic and diluted net income per share was $.17, compared with $.29. For the six months, net income was $55.3 million, compared with $94.3 million. The effective tax rate was 32.8% for the quarter, compared with 27.4%.

U.S. systemwide same-restaurant sales were (7.0)%, with Company-operated at (4.2)% and franchised at (7.2)%. Global systemwide same-restaurant sales were (6.3)%. Global systemwide sales were $3,422.5 million, compared with $3,660.2 million. The company said Company-operated same-restaurant sales decreased due to a decrease in traffic, partially offset by higher average check.

U.S. Company-operated restaurant margin was 13.8% of sales, compared with 16.2%. Wendy's U.S. segment profit was $120.5 million, compared with $137.2 million.

Balance Sheet, Cash Flow and Capital

Cash, cash equivalents and restricted cash totaled $394.8 million at June 28, 2026. Long-term debt was $2,719,239 thousand, with a current portion of $29,750 thousand. Operating cash flow was $160.0 million for six months, compared with $146.0 million.

No shares were repurchased under the January 2023 Authorization during the six months, and $35.0 million of availability remained. The company paid quarterly cash dividends of $.14 per share on March 16 and June 15, 2026, aggregating $53.3 million. On August 7, 2026, it announced a dividend of $.07 per share, payable September 15, 2026 to stockholders as of September 1, 2026.

Management Commentary and Outlook

The 10-Q states that the company is taking action across five areas: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency and restaurants as an engine for growth. It also states that its franchise partner in China had leadership changes and that the parties amended the franchise agreement to provide a termination right for either party before December 12, 2026.

On the call, Chief Financial Officer Steven Cirulis said the company is withdrawing its 2026 financial outlook while the new leadership team assesses the business. He said U.S. same-restaurant sales included a 12.5% decrease in traffic and a 5.6% increase in average check. He said the company ended the quarter with approximately $380 million in cash and a net leverage ratio of 5.0x, and expects leverage to remain elevated in the near term.

Mr. Cirulis said traffic in July was consistent with second quarter trends and that the company expects continued traffic headwinds. He said it expects continued pressure on Company-operated restaurant margin and adjusted EBITDA in the second half, with full-year commodity inflation of approximately 5% to 6%. He also said the company anticipates refinancing approximately $430 million of debt that matures in March of 2028.