Overview

* Wendy's Q2 2025 revenue beats analyst expectations, per LSEG data

* Adjusted EPS for Q2 2025 beats consensus, indicating strong operational performance

* Global systemwide sales decline 1.8%, driven by lower U.S. same-restaurant sales

Outlook

* Wendys ( WEN ) expects 2025 global systemwide sales to decline 3% to 5%

* Company lowers 2025 adjusted EPS forecast to $0.82-$0.89

* Wendys ( WEN ) revises 2025 adjusted EBITDA to $505-$525 mln

* Company anticipates 2025 free cash flow at $160-$175 mln

Result Drivers

* INTERNATIONAL GROWTH - International sales grew 8.7%, driven by expansion across all regions

* US SALES DECLINE - Lower same-restaurant sales in the U.S. contributed to a 1.8% decline in global systemwide sales

* MARGIN PRESSURE - US restaurant margins decreased due to commodity and labor inflation, partially offset by operational efficiencies

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $560.90 $558.50

Revenue mln mln (19

Analysts

)

Q2 $449.60

Adjusted mln

Revenue

Q2 Beat $0.29 $0.26

Adjusted (26

EPS Analysts

)

Q2 EPS $0.29

Q2 Net $55.10

Income mln

Q2 Beat $146.60 $138.60

Adjusted mln mln (21

EBITDA Analysts

)

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 20 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the restaurants & bars peer group is "buy."

* Wall Street's median 12-month price target for Wendy's Co is $13.00, about 23.4% above its August 7 closing price of $9.96

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)