The Wendy’s Company (NASDAQ: WEN) beat Q3 estimates, declared a $0.14 dividend, outlined 2025 guidance, and said a mid‑single‑digit percentage of U.S. restaurants could close under its new “Project Fresh” turnaround. Here’s what investors need to know today.
Wendy’s delivered an earnings beat this morning and doubled down on a major turnaround called Project Fresh. Results were mixed: international momentum helped offset U.S. weakness, while management said a “mid single‑digit percentage” of U.S. units could close as part of a system‑optimization push. The board also declared a $0.14 per‑share quarterly dividend. 1
At a glance: Q3 highlights
- EPS: Adjusted EPS $0.24 (beat consensus ~$0.20). Reported diluted EPS $0.23. 1
- Revenue:$549.5M (–3% YoY). 1
- Comps: U.S. same‑restaurant sales –4.7%; International +3.0%. Global same‑restaurant sales –3.7%. 1
- Systemwide sales: Global –2.6%; International +8.6%. 1
- Adjusted EBITDA:$138.0M (+2.1% YoY). Net income:$44.3M. 1
- Dividend:$0.14/share payable Dec. 15, 2025 to holders of record Dec. 1. 1
Stock reaction (intraday)
As of publication, WEN shares were trading around the mid‑$9s after touching an intraday high near $10.10 following the report. (Real‑time quote above.)
Strategy update: “Project Fresh” and U.S. footprint reset
Interim CEO Ken Cook framed Q3 as “in line” with expectations, citing U.S. company‑operated stores that outperformed the system by ~400 bps amid a back‑to‑basics push and the nationwide launch of barrel‑breaded chicken tenders (“Tendys”). The company simultaneously launched Project Fresh, a four‑pillar plan focused on brand revitalization, operational excellence, system optimization, and capital allocation. 1
A key piece is System Optimization: working with franchisees to improve underperforming restaurants and, where warranted, closing chronic underperformers. On today’s call, Cook estimated “around a mid single‑digit percentage” of U.S. locations could ultimately close, with work beginning this quarter and continuing into 2026. Local and network reports translate that into roughly 200–350 restaurants based on a U.S. base near 6,000 units; management did not publish a list. 2
Slides published for the call detail the plan’s levers: better training and hospitality, improved digital and delivery conversion, technology at the drive‑thru, aligning operating hours to demand, and prioritizing capital toward the highest‑potential restaurants.
The numbers behind the narrative
Where Wendy’s is growing: International continues to be the bright spot, with systemwide sales up 8.6% in Q3 and 54 new restaurants opened globally in the quarter (172 YTD). Quarter‑end counts: ~5,979 U.S., ~1,384 international, ~7,363 total. 1
Where it’s lagging: In the U.S., same‑restaurant sales fell 4.7%, and U.S. company restaurant margins compressed to 13.1% (from 15.6% a year ago). Management emphasized “doing fewer things better,” with tenders as the anchor product for late‑2025 momentum. 1
Capital returns: Q3 materials show 1.4M shares repurchased and the $0.14 dividend, with Wendy’s “on track to return $325M+ to shareholders in 2025.”
2025 outlook (reaffirmed)
Management’s slide deck reiterates 2025 guidance for global systemwide sales growth –5% to –3%, adjusted EBITDA $505M–$525M, adjusted EPS $0.82–$0.89, free cash flow $195M–$210M, and net unit growth 2%–3%. The company expects the U.S. footprint optimization to leave net unit growth toward the low end of the range this year as closures begin.
Marketing & menu: keeping the brand in the conversation
Wendy’s is leaning into seasonal and high‑quality cues. This week the chain introduced the Snickerdoodle Cookie Frosty Fusion as a limited‑time holiday treat, while management said early demand for chicken tenders was strong — some restaurants sold out even before advertising began. 3
How the Street is framing it
Zacks flagged the morning’s EPS and revenue beats but kept a cautious stance on near‑term performance given estimate trends; it also noted Wendy’s shares are down ~46% YTD heading into today’s report. After the release, multiple outlets summarized that results were better than feared even as U.S. traffic and value competition remain headwinds. 4
Investor takeaway
- Execution abroad is working; U.S. is the fix‑it job. International growth and unit development are offsetting negative U.S. comps. 1
- Project Fresh is a real reset. Expect targeted closures, operational tightening, and more disciplined U.S. development — a trade‑off that could lift average unit volumes (AUVs) and franchisee health.
- Cash returns continue via dividend and buybacks, even as 2025 guidance implies a transition year.
Key facts (bookmark this)
- Q3 adjusted EPS: $0.24 vs. ~$0.20 est. | Revenue: $549.5M
- U.S. comps: –4.7% | International comps: +3.0%
- Dividend: $0.14/share (Dec. 15 pay date)
- Closures: “Mid single‑digit %” of U.S. restaurants expected over time as part of system optimization
- 2025 guide: Adjusted EPS $0.82–$0.89; FCF $195M–$210M; Net unit growth 2%–3%
1
FAQ
Is Wendy’s closing stores in 2025?
Yes — as part of Project Fresh, management said a mid‑single‑digit percentage of U.S. restaurants may close, starting in Q4 and continuing into 2026, to refocus capital on healthier units. Local reports put that in the ~200–350 range, though Wendy’s hasn’t published a list. 2
What exactly is Project Fresh?
A four‑pillar plan: brand revitalization, operational excellence, system optimization, capital allocation, including better training, improved digital conversion, tech‑enabled drive‑thru, and prioritizing investment toward the highest‑potential stores.
Does Wendy’s still pay a dividend?
Yes. The company declared a $0.14 quarterly dividend payable Dec. 15, 2025 (record date Dec. 1). 1
What moved the stock today?
A clean EPS/revenue beat, clarity on the U.S. reset, and reaffirmed 2025 ranges, against a backdrop of depressed YTD performance, helped shares rebound intraday.
Sources: Company press release and investor materials, earnings call remarks, and major financial outlets cited throughout.
