Overview
- The company halved its quarterly dividend to $0.07 per share and withdrew full-year 2026 guidance to conserve cash for turnaround efforts.
- U.S. comparable restaurant sales fell 7% in the second quarter, a larger drop than analysts expected, and company-operated margins fell to 13.8% from 16.2% last year because of higher commodity costs, weaker traffic, and rising labor expenses.
- Wendy's recorded a net 81 domestic restaurant closures in the quarter and has previously planned to close about 300 underperforming U.S. locations as part of its restructuring.
- The chain beat consensus on adjusted EPS ($0.18) and revenue ($570.6 million) even as adjusted EBITDA declined year over year and free cash flow rose modestly.
- Nelson Peltz and Trian Partners hold more than a 24% stake and remain in talks with management about potential strategic transactions, a development that has weighed on the stock in recent trading.