Wendy’s Q4 Profit Plunges 44% to $26.5M as US Sales Slide
Wendy’s Q4 net income fell 44.2% to $26.5 million as revenue decreased to $543 million on softer US same-restaurant and franchise fee income. Full-year net income dropped 15.1% to $165.1 million on $2.17 billion revenue with global systemwide sales down 3.5% and 2026 EPS guidance of $0.56–$0.60.
1. Q4 Financial Results
Wendy’s reported Q4 net income of $26.5 million, down 44.2% from $47.5 million a year earlier, driven by a drop in operating profit to $64 million from $96 million and a 5.5% fall in revenue to $543 million. Adjusted EBITDA declined 17.6% to $113.3 million and diluted EPS came in at $0.14.
2. Full-Year Performance
For fiscal 2025, net income fell 15.1% to $165.1 million on revenue of $2.17 billion, down from $2.24 billion, as global systemwide sales decreased 3.5% to $14 billion despite adding 157 net restaurants. The company returned $329.6 million to shareholders through dividends and buybacks, an increase of $48 million.
3. International Growth and Expansion
International systemwide sales rose 6.2% in Q4 and 8.1% for the full year, offsetting weaker US same-restaurant sales. Wendy’s added 34 net restaurants in the fourth quarter, bringing total net openings to 157 and supporting global footprint expansion.
4. Outlook and 2026 Guidance
Interim CEO Ken Cook highlighted ongoing progress on the US "Project Fresh" turnaround plan and strong international momentum. The company projects flat global systemwide sales for 2026 and adjusted EPS of $0.56–$0.60, reflecting continued investment in marketing and franchise support.