Wendy's Q1 2026 Earnings: Revenue Up, Profit Down as U.S. Sales Slump

May 8, 2026 · Published August 7, 2026

Wendy's grew total revenue but profit and U.S. sales weakened, as traffic declines, bad weather, and planned hour cuts pressured the domestic business.

Figures as reported by the company to the SEC for the quarter ended March 29, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.

Key takeaways

• Total revenue grew year over year, but profit moved the other way: net income fell to $22.7 million and per-share earnings dropped to $0.12 from $0.20 in the same quarter last year — profit fell even though sales were higher.
• The main soft spot was in the U.S., where same-restaurant sales (a comparison of sales at locations open at least a year) fell 7.8%. Wendy’s attributed this to fewer customer visits, made worse by severe winter weather in January and February and a deliberate trimming of restaurant operating hours under its cost-focused ‘Project Fresh’ plan.
• International business was a bright spot, with systemwide sales outside the U.S. up 6.0%, which helped offset some of the domestic weakness — though sales at comparable restaurants worldwide still declined 6.8% overall.
• Adjusted EBITDA, a measure of operating profit before certain non-cash and one-time costs, fell to $111.3 million from $124.5 million a year earlier, and restaurant-level profit margins narrowed to 11.4% in the U.S. and 10.8% globally.
• Wendy’s trailing-twelve-month gross margin of roughly 61% reflects its franchise-heavy business model — most of its revenue comes from franchise royalties and rent, which carry much higher margins than running restaurants directly.
• Looking at the past twelve months rather than just this quarter, operating margin was about 15% and net profit margin was under 7%, while earnings per share were down roughly 17% versus a year earlier — a sign the sales slowdown has pressured results for several quarters, not just this one.
• Despite the soft U.S. sales trend, Wendy’s kept its full-year 2026 targets in place at the time of this report, including adjusted EBITDA of $460–$480 million, adjusted earnings per share of $0.56–$0.60, and free cash flow of $190–$205 million, and it held its quarterly dividend steady at $0.14 per share.
• The results came during a leadership transition, with the company continuing to point to its ‘Project Fresh’ turnaround strategy — aimed at simplifying operations and strengthening the financial model for franchisees — as its path forward.

Q1 2026 in context

Figures for the quarter ended Mar 2026 and the quarter ended Mar 2025, as reported to the SEC.

How the stock took it

Wendy's Co closed at $6.95 on May 7, 2026, the last session before the report, and at $6.76 on May 11, 2026, the first session after it — -2.7% across the report.

Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.

Financial history →

Sources: company report · earnings call · provided fundamentals