12:12 PM EST, 11/10/2025 (MT Newswires) -- Wendy's (WEN) is grappling with the expected closure of 300 underperforming US franchisee stores and a reduction in advertising spending in 2026, RBC Capital Markets said Monday in a report.

Company-owned same-store sales outperformed franchisee locations by 400 basis points in Q3, driven by stronger traffic and operational improvements, including enhanced employee training, the report said.

Ad spending is expected to decline 9.7% next year from 2024 as Wendy's works to improve marketing effectiveness with data analytics and consumer segmentation, RBC said.

The nationwide rollout of Tendys chicken tenders in early Q4 "could drive further top-line upside" in Q4, the report said.

"Sales momentum and unit growth are the primary source of debate for the stock in the near term and have potential to drive valuation materially higher -- or lower, RBC said. "We see the current risk-reward as fairly balanced."

RBC cut its price target on Wendy's stock to $9 from $10 and maintained its sector perform rating.

Wendy's shares fell 4.3% in recent Monday trading.

Price: 8.59, Change: -0.39, Percent Change: -4.29