Overview

* Wendy's Q3 global systemwide sales fell 2.6%, with U.S. sales decline offset by international growth

* Adjusted EPS for Q3 beats consensus, while adjusted revenue missed expectations

* Adjusted EBITDA for Q3 beats analyst expectations, reflecting operational improvements

* Company opened 54 new restaurants, increasing total additions to 172 for the year

Outlook

* Wendy's reaffirms 2025 global systemwide sales growth of (5.0) to (3.0) percent

* Wendy's expects 2025 adjusted EBITDA between $505 mln and $525 mln

* Wendy's now expects 2025 free cash flow of $195 to $210 mln

Result Drivers

* INTERNATIONAL GROWTH - Co reports 8.6% growth in international systemwide sales, offsetting U.S. declines

* OPERATIONAL EXCELLENCE - U.S. company-operated restaurants outperformed system by 4% in comparable sales, aided by operational improvements

* PROJECT FRESH - Co launched Project Fresh, focusing on brand revitalization and operational excellence to drive growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $549.50

Revenue mln

Q3 Miss $442.50 $534.46

Adjusted mln mln (20

Revenue Analysts

)

Q3 Beat $0.24 $0.20

Adjusted (26

EPS Analysts

)

Q3 EPS $0.23

Q3 Beat $138 mln $123.50

Adjusted mln (23

EBITDA Analysts

)

Q3 -2.60%

Global

Systemwi

de Sales

Growth

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 20 "hold" and 5 "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 $11.00, about 19.7% above its November 6 closing price of $8.83

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

Press Release:

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(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.)