Q4 2025 Wendy's Co Earnings Call Transcript
Key Points
- The Wendy's Co (WEN) reported strong international growth with system-wide sales up 6.2% in the fourth quarter, marking the 21st consecutive quarter of growth.
- The company opened 59 new international locations in the fourth quarter, expanding into new markets such as Armenia and Scotland.
- US digital sales grew by 12.4% in 2025, reaching an all-time high digital mix of 20%, driven by improvements in the Wendy's app and customer engagement.
- The Wendy's Co (WEN) returned $330 million to shareholders through dividends and share repurchases, an increase of over $48 million from the prior year.
- Project Fresh, the company's turnaround strategy, is structured around four strategic pillars aimed at revitalizing the brand, improving operations, optimizing the system, and disciplined capital allocation.
- Global system-wide sales declined 8.3% in the fourth quarter, driven by a significant decrease in US sales.
- US same-restaurant sales declined 11.3% in the fourth quarter, impacted by reduced marketing spend and tough comparisons with the prior year's promotions.
- The company expects approximately 5% to 6% of US restaurants to close as part of system optimization efforts, which could impact overall sales.
- Adjusted EBITDA decreased by $24.2 million in the fourth quarter compared to the prior year, primarily due to lower franchise fees and reduced company-operated restaurant margins.
- The Wendy's Co (WEN) anticipates global system-wide sales to be approximately flat in 2026, reflecting a challenging rebuilding year.
Good morning. Welcome to The Wendy's Company earnings results conference call. (Operator Instructions) You may begin your conference.
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Good morning and thank you for joining our fiscal 2025 fourth quarter earnings conference call. After this brief introduction, Ken Cook, Interim Chief Executive Officer and Chief Financial Officer, will provide a business update, and then Suzie Thuerk, Chief Accounting Officer and Global Head of FP&A, will review our fourth quarter results, share capital allocation priorities and our 2026 outlook.
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. Before we begin, please take note of the safe harbor statement that appears at the end of today's earnings release.
This disclosure reminds investors that certain information we discuss today is forward-looking and reflects our current expectations
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