The Wendy’s Company reported a significant decline in quarterly earnings, with net income falling nearly 44.2% to $26.5 million in the fourth quarter of 2025, down from $47.49 million in the same period a year earlier. The fast-food chain announced these results for the period ending December 28, 2025, citing decreased operating profit and reduced revenue streams as primary factors behind the Wendy’s quarterly earnings decline.
According to the company, quarterly revenue dropped to $543 million from $574.3 million in the prior-year quarter. The decline was primarily driven by reductions in advertising funds revenue, franchise royalty revenue, and franchise fees, the company stated in its earnings report.
Annual Performance Shows Continued Challenges
For the full year 2025, Wendy’s net income fell 15.1% to $165.1 million, while annual revenue declined to $2.17 billion compared with $2.24 billion the previous year. These figures underscore the ongoing challenges facing the fast-food chain as it navigates a competitive restaurant industry landscape.
Global systemwide sales decreased 8.3% to $3.4 billion in the fourth quarter and fell 3.5% to $14 billion for the full year, according to the company. The decline was attributed primarily to lower same-restaurant sales in the United States, though this impact was partially offset by contributions from new restaurant openings.
Operating Metrics Reveal Deeper Issues
The company’s operating profit for the fourth quarter stood at $64 million, a substantial decrease from $96 million a year earlier. Wendy’s attributed this decline mainly to lower net franchise fees, reduced franchise royalty revenue, and a decrease in the margin at US company-operated restaurants.
Additionally, adjusted EBITDA for the fourth quarter was $113.3 million, down 17.6% year-on-year. For the full year, adjusted EBITDA reached $522.4 million, representing a 3.9% decline compared to the previous year.
International Growth Provides Bright Spot
However, international systemwide sales rose 6.2% in the fourth quarter and 8.1% for the full year, providing a contrast to the domestic market struggles. This international performance demonstrates that challenges facing Wendy’s quarterly earnings are primarily concentrated in its home market.
Meanwhile, the company continued its expansion efforts, adding 34 net new restaurants in the fourth quarter of 2025. This brought total net additions for the year to 157, representing a 2.2% increase in its overall restaurant count.
Shareholder Returns and Leadership Commentary
Despite the earnings challenges, Wendy’s returned $329.6 million to shareholders through dividends and share repurchases for the full year, an increase of over $48 million from the prior year. The company maintained its commitment to shareholder value even amid revenue pressures.
Interim CEO Ken Cook acknowledged the difficulties, stating that the fourth quarter performance was in line with expectations and reflected anticipated challenges. Cook noted that the company is making progress against its “Project Fresh” turnaround plan in the US and continues to deliver strong growth internationally, according to the earnings statement.
Looking Ahead to 2026
For 2026, Wendy’s expects global systemwide sales growth to be flat, with adjusted earnings per share projected to range from $0.56 to $0.60. This cautious outlook reflects the ongoing implementation of the company’s turnaround strategy and the uncertain domestic market conditions that have pressured recent performance.
The company has not announced specific timelines for when investors might expect to see meaningful improvement from its turnaround initiatives. The success of the “Project Fresh” plan will likely determine whether Wendy’s can reverse the current trend in domestic same-restaurant sales in the coming quarters.
