Wendy’s posts US$44.25M net income in Q3 2025 amid strategic changes

GLOBAL – The Wendy’s Company has reported net income of US$44.25 million for the third quarter (Q3) of 2025, reflecting a 12% decrease from US$50.22 million a year earlier.

The decline is attributed to lower other income and reduced operating profit, which fell to US$92.05 million from US$94.67 million in the previous year.

The company also cited weaker profit margins at US company-operated restaurants, decreased franchise royalty revenue, and higher impairment of long-lived assets.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 2.1% to US$138 million, demonstrating improved operational efficiency.

Total revenue fell to US$549.51 million from US$566.73 million due to lower advertising fund revenue and franchise royalty income, partly compensated by increased franchise fees. Sales increased slightly to US$233.15 million.

Global systemwide sales amounted to US$3.5 billion, down 2.6% overall. While US segment same-store sales declined, international systemwide sales grew 8.6% across all regions.

The company added 54 new restaurants in Q3, bringing total openings to 172 for the year.

Wendy’s interim CEO Ken Cook highlighted the strength of the international segment and rollout of new menu items like chicken tenders that contributed to positive adjusted EBITDA growth.

Cook announced hundreds of US store closures late in 2025 as part of the Project Fresh turnaround plan, targeting underperforming locations.

The company reaffirmed guidance projecting global systemwide sales for 2025 to decline between 3% and 5%, reflecting focus on operational excellence and transformation efforts to improve long-term profitability.

Wendy’s recent investments in store-level improvements and technology have played a key role in its Q3 2025 performance.

As part of its Project Fresh turnaround plan, the company allocated US$20 million towards enhancing its average unit volume (AUV) in the US through upgraded equipment, optimized labor scheduling, and staff training.

Digitally, Wendy’s is investing heavily in innovations like self-order kiosks and FreshAi®, an AI-powered drive-thru assistant, improving order accuracy and speed.

Internationally, Wendy’s capital deployment focuses on expanding its footprint, opening 172 new restaurants globally through Q3, including entries into new markets like Romania and Italy.

This expansion underpins the 8.6% systemwide sales growth seen in international markets during Q3.

Despite challenges in the US and planned closures of underperforming locations, these strategic investments have helped franchisees and company-operated stores improve operational efficiency, customer experience, and profitability.

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