Loading...
•
Mar 30
Wendy's Q1 2025 Earnings Report
Wendy’s reported a decrease in revenue and earnings for Q1 2025 amid a challenging U.S. consumer environment.
Key Takeaways
Wendy’s experienced a decline in U.S. same-restaurant sales, impacting total revenue and net income. Despite this, international markets showed strong growth, and digital sales reached a new high. The company returned significant capital to shareholders and opened a net 68 new restaurants globally.
Global digital sales reached a record 20.3% of sales mix.
Net 68 new restaurants were opened globally in the quarter.
Returned $173.5 million to shareholders via dividends and repurchases.
International systemwide sales grew 8.9% despite a global sales decline.
Wendy's
Wendy's
Wendy's Revenue by Segment
Wendy's Revenue by Geographic Location
Revenue by Segment
Company Sales Revenue
CapyFin.comFranchise Royalty Revenue
CapyFin.comFranchise Fees Revenue
CapyFin.comFranchise Rental Revenue
CapyFin.comAdvertising Funds Revenue
CapyFin.comRevenue by Geographic Location
U.S. Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.com Forward Guidance
Wendy’s updated its full-year outlook to reflect macroeconomic pressures in the U.S. while reaffirming key growth targets.
Positive Outlook
- Reaffirmed global net unit growth of 2–3%
- Capital expenditures expected at $100M to $110M
- Free cash flow forecasted at $250M to $270M
- Adjusted EPS guidance of $0.92 to $0.98
- Adjusted EBITDA projected between $530M and $545M
Challenges Ahead
- Lowered global systemwide sales growth to (2.0)% to flat
- U.S. traffic and sales declined
- Restaurant margin under pressure from inflation
- Increase in interest expense impacted net income
- Adjusted EBITDA declined year-over-year