Wendy’s reports 2.1% revenue dip in Q1 2025 to US$523.5M

GLOBAL – The Wendy’s Company has reported first-quarter (Q1) 2025 revenue of US$523.5 million, marking a 2.1% decline from the US$534.8 million recorded during the same period in 2024.

The fast-food chain posted a 1.6% decline in adjusted revenue, falling to US$432.1 million from US$429.8 million in the same period last year.

The downturn was primarily attributed to reduced sales in company-operated restaurants, lower advertising fund revenues, and decreased franchise royalty revenue. These were partially offset by increased franchise fees.

Net income dropped by 6.7% to US$39.2 million, compared to US$42 million in Q1 2024. Operating profit also declined, down 2.3% to US$83.1 million from US$81.2 million.

The company stated that net income was negatively affected by a fall in investment income and rising interest expenses, although these were somewhat cushioned by improved operating profit.

Wendy’s adjusted EBITDA fell by 2.6%, coming in at US$124.5 million versus US$127.8 million the previous year.

The decrease was driven by higher general and administrative expenses, reduced franchise royalties, and slimmer margins in U.S. company-operated restaurants.

Global systemwide sales declined by 1.1% to US$3.4 billion, mainly due to lower same-restaurant sales in the U.S. However, international markets showed growth, aided by new restaurant openings and same-restaurant sales gains.

Despite the broader headwinds, Wendy’s added 68 net new restaurants during the quarter and remains on track to meet its full-year goal of 2–3% net unit growth.

Digital sales continued their upward trend, accounting for 20.3% of the global sales mix.

The company also returned US$173.5 million to shareholders through dividends and share repurchases, including 8.2 million shares bought back for US$124.1 million during Q1 alone.

As of April 25, Wendy’s had repurchased 12 million shares for US$175 million, with US$60 million still available under the current buyback authorisation expiring in February 2027.

President and CEO Kirk Tanner noted that the company maintained both traffic and dollar share in the U.S., while international systemwide sales grew by 8.9%.

He highlighted continued progress on strategic goals, including supporting franchisees, enhancing customer experience, and expanding global presence, adding that Wendy’s remains committed to long-term growth.

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