Wendy's Q3 2026 earnings review

Adjusted EPS of $0.13 beat consensus, but U.S. same-restaurant sales fell 5.7%.

The Wendy's Company (WEN) · Q3 2026 · Published Nov 5, 2026 · By DeepCell AI · Sources

Wendy's Q3 2026 earnings review

Quarter ended September 27, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · Wendy's (WEN) Q3 2026 earnings review

Adjusted EPS of $0.13 beat consensus, but U.S. same-restaurant sales fell 5.7%

  1. 1.Total revenues of $547.0M beat MarketBeat consensus by 3.0%
  2. 2.Global same-restaurant sales fell 5.2%; systemwide sales fell 5.9%
  3. 3.Net income fell 65.9% to $15.1M; Adjusted EBITDA fell 17.8%
  4. 4.No 2026 outlook: it was withdrawn on Aug 7 and not reinstated
  5. 5.The board rejected a $7.35 per share proposal from a Trian-led group
  6. 6.Shares closed at $7.65 on Nov 4 and were $7.71 pre-market on Nov 5

Note: Pre-market price at 8:34 AM ET (20:34 ICT) on Nov 5: pre-market, not a close.Source: Wendy's Form 8-K, Nov 5, 2026; Wendy's Form 8-K (rights plan), Nov 5, 2026; MarketBeat; Yahoo Finance prices, Nov 3–5, 2026

2

2 · Executive summary

Adjusted EPS beat MarketBeat consensus by $0.04, and revenues beat it by 3.0%

Q3 2026 results vs. consensus (MarketBeat; Investing.com)

MetricActualConsensusVarianceResult
Total revenues (MarketBeat)$547.0M$531.3M+$15.7M / +3.0%Beat
Adjusted EPS (MarketBeat)$0.13$0.092+$0.038 / +40.8%Beat
Total revenues (Investing.com)$547.0M$533.5M+$13.5M / +2.5%Beat
Adjusted EPS (Investing.com)$0.13$0.10+$0.03 / +30.0%Beat

Share price, Nov 3–5, 2026 (Yahoo Finance)

Wendy's (Nasdaq)Nov 3 closeNov 4 closeNov 5 pre-marketPre-market move
WEN$7.27$7.65$7.71+0.8%

Pre-market price at 8:34 AM ET (20:34 ICT) on Nov 5: pre-market, not a close. The move is versus the Nov 4 close.

Note: Variance is actual less consensus. No same-restaurant sales consensus was found.Source: Wendy's Form 8-K, Nov 5, 2026; MarketBeat; Investing.com; Yahoo Finance prices

3

3 · Q3 results vs. consensus

Wendy’s gave no 2026 outlook; it withdrew guidance on Aug 7 and set out Dave’s Way

2026 outlook status

ItemAug 7, 2026Nov 5, 2026
2026 financial outlookWithdrawnNot reinstated
Breakfast daypart–Location specific (Dave’s Way)
Share repurchases in Q3–None

Company statements, Nov 5, 2026

ItemFigure
Breakfast change, restaurant-level EBITDAUp to $200.0M
Meritage restaurants to acquire (letter of intent)Up to 163
Quarterly dividend declared$0.07 per share
Repurchase authorization remaining$35.0M

Note: Breakfast EBITDA is systemwide, not company EBITDA. No outlook, so nothing is scored vs. consensus.Source: Wendy's Form 8-K, Nov 5, 2026; Wendy’s Q2 2026 release, Aug 7, 2026; analysis of company data

4

4 · 2026 outlook

Revenues fell 0.5% and net income fell 65.9%

  1. U.S. traffic fellU.S. same-restaurant sales fell 5.7%.
  2. G&A roseG&A rose 26.3%, including $11.9M of strategic costs.
  3. Margins fellU.S. restaurant margin fell to 11.7% from 13.1%.

Key figures

$M unless notedQ3 2025Q3 2026YoY
Total revenues$549.5M$547.0M(0.5%)
Operating profit$92.0M$55.8M(39.4%)
Net income$44.3M$15.1M(65.9%)
Adjusted EBITDA$138.0M$113.4M(17.8%)
Adjusted EPS$0.24$0.13(45.8%)

Note: Adjusted EPS and EBITDA exclude strategic initiative, reorganization and impairment items.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

5

5 · Q3 key financials

U.S. systemwide sales fell 7.6%, while International rose 3.5%

Systemwide and same-restaurant sales by region

Q3 2026, growth in constant currency

RegionSystemwide salesSystemwide growthSame-restaurant salesRestaurants
U.S.$2,777.0M-7.6%-5.7%5,711
International$549.4M+3.5%-2.2%1,483
Global$3,326.4M-5.9%-5.2%7,194
International same-restaurant sales fell 2.2% after a +3.0% rise a year ago

Note: Systemwide sales include franchise restaurants and are not company revenues. Excludes Argentina.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

6

6 · Systemwide sales by region

Franchise royalties fell $8.4M, more than offsetting higher ad funds revenue

Total revenues bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $549.5M$M · Company sales: $1.7M$M · Royalties: -$8.4M$M · Fees: -$1.3M$M · Rental: $1.1M$M · Ad funds: $4.4M$M · Q3 2026: $547.0MQ3 2025CompanysalesRoyaltiesFeesRentalAd fundsQ3 2026$500.0M$520.0M$540.0M$560.0M$549.5M$1.7M-$8.4M-$1.3M$1.1M$4.4M$547.0M
Advertising funds revenue rose $4.4M; it is passed through to marketing

Note: Axis starts at $500M.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

7

7 · Revenue bridge

U.S. same-restaurant sales fell 5.7%, a 100 bps deeper decline

Same-restaurant sales growth by region

% change YoY, Q3 2025 vs. Q3 2026

U.S. · Q3 2025: -4.7%U.S. · Q3 2026: -5.7%International · Q3 2025: 3.0%International · Q3 2026: -2.2%Global · Q3 2025: -3.7%Global · Q3 2026: -5.2%Q3 2025Q3 2026-8%-5%-3%0%3%4%-4.7%-5.7%3.0%-2.2%-3.7%-5.2%
Nine-month U.S. same-restaurant sales fell 6.8%

Note: Growth is in constant currency and excludes Argentina.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

8

8 · Same-restaurant sales by region

Operating profit fell 39.4%, led by lower net franchise income and higher G&A

Operating profit bridge

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $92.0M$M · Company: -$2.3M$M · Franchise: -$17.4M$M · Ad funds: $2.0M$M · G&A: -$15.2M$M · D&A: -$1.3M$M · Other: -$2.0M$M · Q3 2026: $55.8MQ3 2025CompanyFranchiseAd fundsG&AD&AOtherQ3 2026$0.0M$25.0M$50.0M$75.0M$100.0M$92.0M-$2.3M-$17.4M$2.0M-$15.2M-$1.3M-$2.0M$55.8M
Net franchise income fell $17.4M, as franchise support costs rose

Note: Franchise, net is royalties, fees and rent less franchise support and rental costs.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

9

9 · Operating profit bridge

Adjusted EBITDA margin fell 516 bps to 26.0%

Margins

%, Q3 2025 vs. Q3 2026

Adjusted EBITDA margin · Q3 2025: 31.2%Adjusted EBITDA margin · Q3 2026: 26.0%Operating margin · Q3 2025: 16.8%Operating margin · Q3 2026: 10.2%U.S. restaurant margin · Q3 2025: 13.1%U.S. restaurant margin · Q3 2026: 11.7%Q3 2025Q3 20260%10%20%35%31.2%26.0%16.8%10.2%13.1%11.7%
U.S. Company-operated restaurant margin fell 140 bps

Note: Adjusted EBITDA margin is to adjusted revenues (excluding ad funds); operating margin is to total revenues.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

10

10 · Margin analysis

Nine-month free cash flow fell 10.9% to $174.2M

Operating cash flow to free cash flow

$M, nine months to Sep 27, 2026

$M · Operating cash flow: $239.0M$M · Capex: -$48.7M$M · Development fund: -$14.6M$M · Ad funds: -$1.4M$M · Free cash flow: $174.2MOperating cashflowCapexDevelopmentfundAd fundsFree cash flow$0.0M$50.0M$100.0M$150.0M$200.0M$260.0M$239.0M-$48.7M-$14.6M-$1.4M$174.2M
Capex fell 23.9% to $48.7M

Note: Free cash flow is as Wendy’s defines it. Quarterly cash flow is not reported.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

11

11 · Free cash flow

12 · Restaurant count by region

13 · Balance sheet and debt

With no outlook, U.S. traffic and franchisee health are the swing factors after a 5.7% U.S. sales drop

Indicator
What to watch
Implication
Latest reading
U.S. same-restaurant sales
Dave’s Way tests
Royalties keep falling
Q3 -5.7%
Franchisee health
Closures and support costs
Net franchise income falls
U.S. net openings -258 year to date
Strategic spending
G&A step-up
Adjusted EBITDA pressure
$11.9M in Q3
Meritage deal
Letter of intent only
More company restaurants
Up to 163 restaurants

Note: These are analytical watch points, not company targets.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

14

14 · Key risks to outlook

15 · Appendix: Revenue detail

Appendix: profit and margin detail

ClaimEvidenceCalculation
Operating margin fell16.8% to 10.2%Operating profit to total revenues
Effective tax rate rose30.0% to 40.7%Tax provision to pretax income
Interest expense rose$31.5M to $33.6MNet of interest income
Adjusted income fell$46.0M to $24.7MNet income plus adjustments after tax

Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

16

16 · Appendix: Profit and margins

17 · Appendix: Cash and capital

Appendix: Investor Group proposal and rights plan

ClaimEvidenceCalculation
Proposal rejected$7.35 per share in cashTrian, Flynn, BlueFive, Sixth Street
Nov 4 close vs. proposal+4.1%Close above the offer
Rights plan trigger15% ownershipExpires Nov 3, 2027
Board viewSubstantially undervaluesIndependent committee, unanimous

Source: Wendy's Form 8-K (rights plan), Nov 5, 2026; Yahoo Finance prices

18

18 · Appendix: Takeover proposal

Appendix: income statement detail

Revenues, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Sales$233.2M$234.9M0.7%
Franchise royalty revenue$127.8M$119.4M(6.6%)
Franchise rental income$57.3M$58.5M1.9%
Total revenues$549.5M$547.0M(0.5%)

Net income to Adjusted EBITDA, $M

$MQ3 2025Q3 2026
Net income$44.3M$15.1M
Operating profit$92.0M$55.8M
Depreciation and amortization$38.4M$39.9M
Strategic initiative expenses$0.0M$11.9M
Adjusted EBITDA$138.0M$113.4M

Note: Other EBITDA items are ad funds, cloud amortization, optimization gains, reorganization and impairment.Source: Wendy's Form 8-K, Nov 5, 2026; analysis of company data

19

19 · Appendix: Income statement

Appendix: sources

  • Filing: Wendy's Form 8-K (items 2.02, 9.01), Nov 5, 2026, accepted 7:07 AM ET — https://www.sec.gov/Archives/edgar/data/30697/000119312526448548/0001193125-26-448548-index.html
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/30697/000119312526448548/d129346dex991.htm
  • Filing: Wendy's Form 8-K (rights plan; Investor Group proposal), Nov 5, 2026 — https://www.sec.gov/Archives/edgar/data/30697/000119312526448576/d305992dex991.htm
  • Outlook withdrawn: Q2 2026 release (Ex. 99.1), Aug 7, 2026 — https://www.sec.gov/Archives/edgar/data/30697/000119312526339132/d130352dex991.htm
  • Q3 consensus: MarketBeat — https://www.marketbeat.com/earnings/reports/2026-11-5-the-wendys-company-stock/
  • Q3 consensus check: Investing.com — https://www.investing.com/news/earnings/wendys-earnings-up-next-can-turnaround-plan-reverse-traffic-slide-93CH-5000282
  • Share price: Yahoo Finance WEN, Nov 3 and Nov 4 closes; Nov 5 pre-market, 8:34 AM ET (20:34 ICT), not a close — https://finance.yahoo.com/quote/WEN/
  • Q3 2026 is the quarter ended Sep 27, 2026; Q3 2025 ended Sep 28, 2025. No Q3 Form 10-Q was on EDGAR at build time.

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20

20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from The Wendy's Company's Forms 8-K of November 5, 2026 and August 7, 2026. Consensus estimates (MarketBeat, Investing.com) and share prices (Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Figures are as reported for the quarters ended September 27, 2026 and September 28, 2025, in US dollars. Systemwide sales include franchise restaurants and are not company revenues.

Forward-looking statements. Company statements, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Non-GAAP measures. Adjusted revenues, Adjusted EBITDA, adjusted EPS and free cash flow follow Wendy's own definitions and are reconciled in its release. They may not be comparable with other companies' measures.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by The Wendy's Company. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings.

Date of analysis. The analysis reflects information available on the morning of November 5, 2026, US Eastern time, with a pre-market share price.

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21

21 · Disclosures

Sources

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