Wendy's Q1 Sales Slide 5.5% as Net Income Drops to $22.7M
Wendy's reported Q1 net income of $22.7 million and adjusted EBITDA of $111.3 million as global systemwide sales fell 5.5% with U.S. same-restaurant sales down 7.8%. The company reaffirmed its 2026 outlook and signed a franchise agreement to build up to 1,000 restaurants in China over ten years.
1. First-Quarter Financial Performance
Wendy's reported global systemwide sales of $3.22 billion, a 5.5% decline from last year, driven by a 7.8% drop in U.S. same-restaurant sales. Total revenues rose 3.3% to $540.6 million, while net income fell 42% to $22.7 million and adjusted EBITDA decreased 10.6% to $111.3 million.
2. International Expansion Agreement
International systemwide sales grew 6.0% in the quarter, supported by new openings in key markets. Wendy's entered a franchise agreement to develop up to 1,000 restaurants in China over the next decade, marking a significant step in its global growth strategy.
3. Strategic Initiatives and Outlook
Management highlighted the launch of a new Biggie platform, upgraded premium hamburgers, and new chicken sandwiches to drive traffic and improve margins. The company reaffirmed its full-year 2026 guidance, citing ongoing operational improvements and franchise optimization programs.