Q2 2026 Wendy's Co Earnings Call Transcript
Key Points
- The Wendy's Co (WEN) reported a sequential improvement in US same-restaurant sales of 80 basis points from Q1 to Q2 2026.
- International systemwide sales grew 3.4%, with an 8.6% increase excluding Canada, supported by new restaurant development.
- The company generated $120.3 million in free cash flow in the first half of 2026, an increase of $10.8 million year-over-year.
- US customer satisfaction scores improved during the quarter, and US company-operated restaurants outperformed the broader system by 280 basis points in same-restaurant sales.
- The new leadership team, with prior turnaround experience at Potbelly, has identified five strategic focus areas and is committed to transparent communication and measurable progress.
- Global system-wide sales decreased 6.5%, with US same-restaurant sales down 7.0% and international same-restaurant sales down 2.3%.
- US traffic declined 12.5% in Q2, with negative double-digit traffic each period of the quarter, and July traffic remained consistent with Q2 trends.
- Adjusted EBITDA fell $22.5 million year-over-year to $124.1 million, and adjusted EPS dropped to $0.18.
- The company withdrew its 2026 financial outlook and expects continued pressure on margins and EBITDA in the second half due to sales deleverage and commodity inflation of 5-6%.
- Net leverage is elevated at 5.0 times, and the company reduced its dividend to $0.07 per share, with no share repurchases anticipated in 2026.
Good morning. Welcome to the Wendy's Company earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session.
If you would like to ask a question during this time, simply press followed by the number 1 on your telephone keypad. If you would like to withdraw your question, press followed by the number 2.
Thank you. You may begin your conference.
Good morning, and thank you for joining our fiscal 2026 second quarter earnings conference call.
After this brief introduction, Bob Wright, President and Chief Executive Officer, will provide a business update and then Steve Surulis, Chief Financial Officer and Chief Strategy Officer, will review our second quarter results, as well as our capital allocation priorities. From there, we will open up the line for questions.
Today's conference call and webcast includes a presentation, which is available on our investor relations website, ir.wendys.com.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
