Wendy’s (NASDAQ:WEN) Issues Quarterly Earnings Results, Beats Estimates By $0.02 EPS

13 Feb 2026, 18:22 by Mitch Edgeman · The Markets Daily

Wendy’s (NASDAQ:WEN – Get Free Report) posted its earnings results on Friday. The restaurant operator reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.02, FiscalAI reports. Wendy’s had a return on equity of 125.74% and a net margin of 8.43%.The company had revenue of $439.60 million during the quarter, compared to analysts’ expectations of $537.11 million. During the same quarter last year, the firm earned $0.25 earnings per share. The firm’s quarterly revenue was down 5.5% compared to the same quarter last year. Wendy’s updated its FY 2026 guidance to 0.560-0.600 EPS.

Here are the key takeaways from Wendy’s’ conference call:

U.S. sales weakness: Global system-wide sales fell 8.3% in Q4 and U.S. same-restaurant sales were down ~11.3%, driven by reduced marketing, a tough SpongeBob comp, weather headwinds, and a delayed chicken launch.
Project Fresh turnaround: Management launched a four‑pillar plan (brand revitalization, operational excellence, system optimization, disciplined capital allocation) and expects 2026 to be a rebuilding year with roughly flat global system‑wide sales and sequential improvement in U.S. comps.
International growth remains a bright spot: International system‑wide sales grew 6.2% in Q4 and 8.1% for 2025 with record net unit growth (121 net new restaurants) and a similar international development cadence expected in 2026.
Operational improvements are showing results—U.S. company‑operated restaurants outperformed the broader system by ~310–410 bps in 2025, and the company is scaling enhanced training, field support, and restaurant tech to franchisees to lift customer satisfaction and execution.
Guidance and capital priorities: 2026 targets include Adjusted EBITDA of $460–480M, Adj. EPS $0.56–0.60, FCF $190–205M, a maintained $0.14 quarterly dividend, continued share repurchases, but net leverage remains elevated (~4.8x) and system optimization is expected to reduce EBITDA by ~$15–20M.

Wendy’s Stock Up 4.5%

Shares of WEN traded up $0.33 during midday trading on Friday, hitting $7.60. The company had a trading volume of 11,053,853 shares, compared to its average volume of 7,666,031. Wendy’s has a 1 year low of $7.08 and a 1 year high of $16.20. The firm has a market capitalization of $1.45 billion, a P/E ratio of 8.10, a P/E/G ratio of 1.52 and a beta of 0.38. The company has a debt-to-equity ratio of 26.89, a quick ratio of 0.80 and a current ratio of 0.81. The company’s 50-day simple moving average is $8.21 and its 200-day simple moving average is $8.96.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Quadrant Capital Group LLC acquired a new position in shares of Wendy’s during the 3rd quarter worth $95,000. Brooklyn Investment Group increased its holdings in Wendy’s by 894.1% during the 3rd quarter. Brooklyn Investment Group now owns 10,786 shares of the restaurant operator’s stock valued at $99,000 after acquiring an additional 9,701 shares in the last quarter. Tower Research Capital LLC TRC raised its position in Wendy’s by 53.1% during the second quarter. Tower Research Capital LLC TRC now owns 8,629 shares of the restaurant operator’s stock worth $99,000 after acquiring an additional 2,994 shares during the last quarter. Coldstream Capital Management Inc. acquired a new position in Wendy’s during the third quarter worth about $101,000. Finally, BTG Pactual Asset Management US LLC lifted its holdings in shares of Wendy’s by 23.0% in the third quarter. BTG Pactual Asset Management US LLC now owns 12,370 shares of the restaurant operator’s stock valued at $113,000 after purchasing an additional 2,314 shares in the last quarter. Institutional investors and hedge funds own 85.96% of the company’s stock.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on WEN. Truist Financial reduced their price objective on shares of Wendy’s from $12.00 to $11.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. Stifel Nicolaus set a $9.00 price objective on shares of Wendy’s in a report on Thursday, February 5th. Argus upgraded shares of Wendy’s to a “hold” rating in a report on Wednesday, January 21st. Zacks Research upgraded Wendy’s from a “strong sell” rating to a “hold” rating in a research note on Tuesday, November 11th. Finally, Sanford C. Bernstein set a $9.00 price target on Wendy’s in a research report on Wednesday, October 22nd. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, sixteen have assigned a Hold rating and five have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $10.20.

View Our Latest Analysis on Wendy’s

Key Stories Impacting Wendy’s

Here are the key news stories impacting Wendy’s this week:

Positive Sentiment: Q4 earnings beat consensus on the bottom line (reported $0.16 EPS vs. ~$0.14 expected), which shows some near-term profitability resilience despite year-over-year softness. Wendy’s (WEN) Q4 Earnings and Revenues Beat Estimates
Neutral Sentiment: Promotional activity and new menu items (e.g., $1 promotions, Frosty flavors) may support traffic short-term but are unlikely to offset the broader sales trends by themselves. Wendy’s celebrating ‘singles’ with $1 burgers on Feb. 15. See deal
Negative Sentiment: Widespread U.S. weakness: Wendy’s said it will close as many as 350 U.S. locations in H1 2026, reflecting ongoing struggles to attract customers and stabilize store-level performance. Wendy’s says as many as 350 US locations will close in the first half of this year
Negative Sentiment: Guidance and sales pain: management set FY2026 EPS guidance of $0.56–$0.60 versus a ~$0.86 consensus, and reported declining global systemwide sales and negative U.S. same-restaurant sales — a clear driver of analyst concern. THE WENDY’S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS AND PROVIDES 2026 OUTLOOK
Negative Sentiment: Market reaction: shares hit a 52-week low and have tumbled over the past year as investors price in slower traffic, margin pressure and execution risk for the company’s turnaround plan. Highly Shorted Stock Wendy’s Hits 52-Week Low On Weak Outlook

About Wendy’s

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The Wendy’s Company (NASDAQ:WEN) operates as a global quick-service restaurant chain, best known for its square-shaped beef patties, fresh ingredient sourcing and signature Frosty dessert. The company’s menu features a variety of hamburgers, chicken sandwiches, salads, breakfast sandwiches, sides and beverages, designed to appeal to a broad customer base seeking both classic and contemporary fast-food options. Wendy’s has placed particular emphasis on product innovation, introducing limited-time offerings and revamped core menu items to maintain customer interest and respond to evolving dining trends.