Wendy’s shares rose on Friday after the fast-food large reported stronger-than-expected quarterly earnings, beating analyst estimates regardless of poor U.S. retailer efficiency, with U.S. same-restaurant gross sales falling 7.8%.
That gradual however regular development displays the burger chain’s effort to show round gross sales by shedding low-performing American eating places and bettering menu high quality. The plan comes amid an total decline in fast-food retailer site visitors, as People shoppers grapple with greater costs and the price of meals and residing soar.
“We’re within the early innings of our turnaround,” Cook dinner advised analysts on Friday’s earnings name.
Within the earnings report, Wendy’s shared that it had 5,979 U.S. eating places initially of This fall 2025, when it first introduced its turnaround plan. By the top of Q1 2026, it had 5,805 eating places—including as much as a internet lack of 174 places over these months.
Quick Firm has reached out to Wendy’s to substantiate the variety of retailer closures and a list of those locations. (Wendy’s interim CEO Ken Cook dinner previously announced the corporate can be closing some 200-350 underperforming U.S. retailer places this yr.)
Wendy’s quarterly income got here in at $540.6 million, beating analyst estimates of $520.48 million, for a 3.3% enhance from the identical interval final yr. The corporate’s adjusted earnings per share (EPS) got here in at 12 cents, versus expectations of 10 cents.
Shares within the Wendy’s Firm (Nasdaq: WEN) rose over 4% in morning buying and selling, and have been up some 2% by noon on Friday on the time of this writing.
“We’re taking decisive motion to strengthen the Wendy’s system and enhance efficiency,” interim CEO Ken Cook dinner stated in a statement. “Whereas our first quarter outcomes replicate a enterprise within the early phases of a turnaround, we’re making progress to enhance our U.S. enterprise and are assured within the path we’re heading.”
Cook dinner stated these enhancements embrace a brand new Biggie platform, upgrading their premium hamburgers, and launching new rooster sandwiches. Moreover, he credited the corporate’s deal with operational excellence in “driving enchancment so as accuracy and key buyer satisfaction metrics” including that whereas U.S. gross sales lag, “our worldwide enterprise continues to ship robust outcomes, with systemwide gross sales up 6% . . . supported by additional growth in key development markets.”
These development markets embrace China: On Friday, Cook dinner introduced a brand new franchise settlement to construct as much as 1,000 eating places throughout China over the subsequent 10 years.
“These actions are strengthening our basis and positioning Wendy’s to regain momentum and ship sustainable development and long-term worth creation,” stated Cook dinner.
