Wendy’s Q4 Beats Estimates, Guides 2026 EPS to $0.56-$0.60 and Plans Hundreds of Closures
Wendy’s reported Q4 adjusted EPS of $0.16 on $543 million revenue, beating estimates, while global systemwide sales fell 8.3% to $3.4 billion and US same-restaurant sales declined 11.3%. The chain plans to close hundreds of underperforming US restaurants through mid-2026 and guided 2026 EPS to $0.56-$0.60, below consensus.
1. Q4 Performance and 2026 Outlook
Wendy’s posted adjusted EPS of $0.16 on $543 million revenue, topping consensus by a cent, while systemwide sales fell 8.3% year-over-year to $3.4 billion and US same-restaurant sales dropped 11.3%. The company guided 2026 EPS to $0.56-$0.60, significantly below consensus, and projected flat systemwide sales growth.
2. US Restaurant Closures
The chain plans to close hundreds of underperforming US restaurants through mid-2026 as part of a network optimization, aiming to improve average unit volumes and profitability by reallocating capital to higher-performing markets.
3. Value Menu and Traffic Initiatives
To counter traffic declines and rising commodity and labor costs, Wendy’s is expanding its value menu and promotional pricing, targeting increased customer visits and improved unit economics.
4. International Sales Resilience and Unit Growth
International systemwide sales rose 6.2% in Q4 and 8.1% for the full year, while net unit additions reached 34 restaurants in the quarter and 157 for 2025, representing 2.2% system growth.