The Wendy's Company reported second quarter 2026 revenue of $570.6 million and adjusted EPS of $0.18, both exceeding analyst expectations. However, the results highlighted significant domestic weakness as U.S. same-restaurant sales plummeted 7.0% and company-operated restaurant margins contracted by 240 basis points. In response to these headwinds and a leadership transition, management withdrew its 2026 financial outlook and reduced its quarterly dividend to $0.07 per share to provide flexibility for a new turnaround plan.
Key Highlights
- U.S. same-restaurant sales fell 7.0% for the quarter, driven by declining guest traffic and a pivot in value strategy.
- U.S. Company-operated restaurant margins decreased to 13.8% due to commodity inflation and labor rate increases.
- The company saw a net decrease of 71 global restaurants during the quarter, including 81 net closures in the U.S. market.