Wendy's U.S. Same-Store Sales Decline Narrows

The Tip Desk · November 7, 2026 · 4 min read

Global systemwide sales fell 5.9% in the third quarter as U.S. same-restaurant sales dropped 5.7%, a milder decline than the 7.0% drop in the second quarter.

The Wendy’s Company (WEN) reported global systemwide sales of about $3.3 billion for the third quarter ended September 27, 2026, a 5.9% decline that was milder than the 6.5% drop in the second quarter. U.S. same-restaurant sales fell 5.7%, improving from a 7.0% decline in the prior quarter and a 7.8% decline two quarters earlier. International same-restaurant sales declined 2.2%.

U.S. systemwide sales fell 7.6%, a milder drop than the 8.2% decline in the second quarter. International systemwide sales grew 3.5%. The company said the global systemwide decline was driven primarily by lower U.S. same-restaurant sales and a decrease in the number of restaurants in the U.S. U.S. net restaurant openings were (13) in the third quarter, after (81) in the second quarter and (164) in the first; the quarter-end U.S. count was 5,711. Global net openings were 14, after (71) and (146), for a global count of 7,194.

Reported revenues were $547.0 million, down 0.5% from a year earlier. Adjusted revenues were $435.6 million, down 1.6%. The company said the revenue decline came primarily from lower franchise royalty revenue, partially offset by higher advertising funds revenue as local advertising funds were reallocated to U.S. national advertising and higher Company-operated restaurant sales reflecting franchise acquisitions in the third quarter of 2025.

Net income was $15.1 million, down 65.9% from a year earlier. Reported diluted earnings were $0.08 a share. Adjusted earnings were $0.13 a share. Operating profit fell to $55.8 million, down 39.3%. Adjusted EBITDA was $113.4 million, down 17.8%.

U.S. Company-operated restaurant margin compressed to 11.7%, a 140 basis-point year-over-year decline, after 11.4% in the second quarter. The company attributed the margin drop primarily to a decline in traffic, labor rate inflation, and commodity inflation, partially offset by an increase in average check and labor efficiencies.

General and administrative expense rose to $73.1 million, up 26.3% from a year earlier. The company said the increase was primarily due to strategic initiative expenses in the current year and lower share-based compensation in the prior year after the departure of the previous President and Chief Executive Officer. Operating profit was also affected, the company said, by lower net franchise fees from an increase in the provision for doubtful accounts, lower franchise royalty revenue, and higher reorganization and realignment costs related to a portfolio optimization initiative.

The company launched Dave’s Way, a multi-year strategy focused on growing customer traffic and market share while strengthening restaurant profitability. It revised breakfast to be location-specific after test results, initiated portfolio optimization including planned Company restaurant acquisitions and transfers of franchised restaurants, and signed a letter-of-intent with Meritage Hospitality Group and its lenders to acquire up to 163 Wendy’s restaurants, subject to a definitive agreement, better and higher offers, and court approval. Meritage is also exploring the sale and recapitalization of its other markets.

Chief Executive Officer Bob Wright said the system had aligned around Dave’s Way and that tests and new initiatives were underway across five strategic pillars. Chief Financial Officer Steve Cirulis said the company had evaluated the investment needs of the strategy and was confident it had the financial capacity to execute, citing approximately $413 million in cash and $174 million of free cash flow year-to-date. The company said it anticipates the breakfast daypart decision could unlock up to $200 million in restaurant-level EBITDA across the system.

For the first nine months of 2026, net cash provided by operating activities was $239.0 million and free cash flow was $174.2 million. The company declared a quarterly cash dividend of $0.07 a share, payable December 15, 2026. It did not repurchase shares in the third quarter and had not repurchased any in the fourth quarter as of the release; about $35.0 million remained under an authorization expiring February 2027.