The Wendy's Company has reported its first-quarter 2026 financial results, with the fast-food giant posting a net income of $22.7 million and adjusted EBITDA of $111.3 million. The company's diluted earnings per share, both reported and adjusted, stood at $0.12 for the quarter ended March 29, 2026. These figures reflect the early stages of a turnaround strategy, according to Interim CEO Ken Cook.
International Expansion Fuels Growth Amidst Domestic Turnaround
While the U.S. business navigates its turnaround, Wendy's international operations demonstrated robust performance, with systemwide sales growing by 6.0% in the first quarter. This international strength is underscored by a landmark franchise agreement with an experienced operator to establish up to 1,000 Wendy's restaurants across China over the next ten years. This ambitious expansion plan aims to significantly broaden Wendy's global footprint and tap into new market potential.
“Our international business continues to deliver strong results, with systemwide sales up 6.0% in the quarter supported by further expansion in key growth markets,” stated Ken Cook, Interim CEO. “We're also excited to announce today a new franchise agreement with an experienced restaurant operator to build up to 1,000 restaurants across China over the next 10 years and look forward to bringing Wendy's to more fans around the globe.” The company is confident that these strategic moves will position Wendy's to regain momentum and foster sustainable long-term value creation.
Strategic Initiatives and Operational Focus
Wendy's has been actively implementing strategic initiatives to bolster its performance. During the first quarter, the company introduced a new Biggie platform, upgraded its premium hamburgers, and launched new chicken sandwiches. A strong emphasis on operational excellence is also driving improvements in order accuracy and key customer satisfaction metrics. These efforts are foundational to the company's turnaround strategy, aiming to enhance the customer experience and operational efficiency.
However, global systemwide sales saw a decrease of 5.5%, primarily influenced by a 7.3% decline in U.S. systemwide sales. This contrasts with the international growth, which saw a 7.3% increase in U.S. systemwide sales in the prior year. The company's operational highlights show a decrease in U.S. systemwide sales growth from -2.6% in Q1 2025 to -7.3% in Q1 2026, while international systemwide sales growth saw a significant increase from 8.9% to 6.0% within the same period. The company reaffirms its full-year 2026 outlook, indicating confidence in its strategic direction despite the mixed quarterly performance. Wendy's is scheduled to host a conference call on May 8 at 8:30 a.m. ET to discuss these results further.