Wendy's Reports Q4 Results with Declining U.S. Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 03 2026
0mins
Should l Buy WEN?
Source: PRnewswire
Wendy's Co experienced a significant decline of 9.29% in its stock price, crossing below the 5-day SMA, amid mixed market conditions where the S&P 500 rose slightly while the Nasdaq-100 fell.
The company's Q4 2025 financial results revealed a net income drop of 44.2% year-over-year, attributed to a decline in U.S. restaurant margins from 16.5% to 12.7% due to decreased traffic and rising costs. Despite international sales growth of 6.2%, the overall global systemwide sales fell by 8.3%, indicating ongoing challenges in the U.S. market. Analysts have expressed concerns about the company's future performance, with BMO Capital and Evercore ISI Group lowering their price targets significantly.
These results highlight the pressure on Wendy's profitability and operational efficiency, raising concerns about its ability to navigate the competitive fast-food landscape effectively.
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Analyst Views on WEN
Wall Street analysts forecast WEN stock price to rise
20 Analyst Rating
2 Buy
14 Hold
4 Sell
Hold
Current: 7.000
Low
8.00
Averages
9.39
High
11.00
Current: 7.000
Low
8.00
Averages
9.39
High
11.00
About WEN
The Wendy’s Company is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants. The Company’s menu includes made-to-order square hamburgers using beef, and fan favorites like the Spicy Chicken Sandwich and nuggets, Baconator, and the Frosty dessert. Its segments include Wendy’s U.S., Wendy’s International and Global Real Estate & Development. Wendy’s U.S. includes the operation and franchising of its restaurants in the United States. Wendy’s International includes the operation and franchising of its restaurants in countries and territories other than the United States. Global Real Estate & Development includes real estate activity for owned sites and sites leased from third parties, which are leased and/or subleased to franchisees, and also includes its share of the income of its Canadian restaurant real estate joint venture (TimWen). The Company and its franchisees have over 7,000 restaurants worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Wendy's Stock Rallies Amid Acquisition Speculation
- Guidance Downgrade: Wendy's projected adjusted EPS for 2026 at 56 to 60 cents, significantly below the 86-cent consensus, leading to a 52-week low in stock price, reflecting shrinking margins and double-digit declines in U.S. same-store sales.
- Acquisition Speculation: Trian highlighted the potential for “one or more” strategic moves, including acquisitions or extraordinary transactions, which could grant control to Trian and partners, possibly leading to a delisting, thus igniting speculative trading in the stock.
- Analyst Target Cuts: The stock carries a Hold rating with an average price target of $8.75, with BMO Capital, Evercore ISI, and Goldman Sachs lowering their targets to $9.00, $8.00, and $7.00 respectively on February 17, indicating cautious sentiment regarding the company's future performance.
- Stock Price Surge: On Wednesday, Wendy's shares rose by 15.57% to $8.09, suggesting that investors are engaging in short-covering and bargain-hunting following the recent lows, likely influenced by Trian's acquisition discussions.
See More
Wendy's Stock Surges 14.8% Amid Peltz Stake Considerations
- Investor Interest: Nelson Peltz disclosed in an SEC filing that he holds over a 16% stake in Wendy's (WEN) and is considering options to buy more shares or sell part of his stake, indicating a strong belief in the company's undervaluation that could spark market interest in its future strategies.
- Historical Relationship: Peltz's nearly two-decade relationship with Wendy's has involved acquisitions and activist investments that have driven company changes, highlighting his significant influence on corporate governance and strategic direction, which may bolster investor confidence.
- Market Performance: Wendy's stock surged 14.8% on Wednesday, crossing back over the $8 mark, reflecting positive market expectations regarding potential actions from Peltz, thereby enhancing investor sentiment about the company's future performance.
- Sales Challenges: Despite a same-store sales decline of 11.3% in Q4 2025, Wendy's aims to achieve an adjusted EPS target of $0.56 to $0.60 in 2026 through its
See More
Wendy's Company Responds to Trian Fund Management
- Strategic Review: The Wendy's Company's Board and management regularly assess strategic priorities to maximize shareholder value, demonstrating a strong commitment to shareholder interests.
- Project Fresh Execution: During the Q4 2025 earnings call, the company emphasized the urgent execution of its 'Project Fresh' turnaround plan to strengthen its U.S. business while continuing robust international growth, indicating confidence in future performance.
- Forward-Looking Statements: The press release includes forward-looking statements based on the company's expectations, which may be affected by various risks and uncertainties, cautioning investors about potential market fluctuations.
- Global Scale: Wendy's and its franchisees employ hundreds of thousands across more than 7,000 restaurants worldwide, showcasing its significant influence and market share in the fast-food industry.
See More
Wendy's Shares Surge 17.5% on Investor Catalyst
- Investor-Driven Change: Longtime investor Nelson Peltz indicated he may push for changes at Wendy's, aiming to boost the company's stock price, which surged 16.8%, reflecting market anticipation for future transformations.
- Shareholder Engagement Plans: Peltz's hedge fund Trian Asset Management disclosed in an SEC filing that it has engaged with potential financing sources and strategic partners to explore transactions that could enhance shareholder value, suggesting significant governance changes may be on the horizon.
- Persistent Stock Decline: Despite Wednesday's gains, Wendy's shares have plummeted nearly 42% over the past year, highlighting the ongoing challenges the company faces post-pandemic, particularly the impact of reduced foot traffic on performance.
- Earnings Guidance Miss: While Wendy's fourth-quarter results exceeded expectations, its 2026 profit guidance fell short of Wall Street's forecasts, prompting analysts to cut price targets, which further exacerbated market concerns about the company's future performance.
See More
Nelson Peltz Increases Stake in Wendy's Amid Strategic Review
- Stake Holding: According to a filing, Nelson Peltz, founder of Trian Fund Management, holds a 16.24% stake in Wendy's, indicating his ongoing interest and investment intent in the company.
- Investment Strategy: Peltz is considering options to increase or decrease his economic exposure through financial instruments or agreements with other parties, which could impact shareholder interests and reflects his strategic thinking about the company's future.
- Financial Outlook: Wendy's forecast for FY2026 is disappointing, with earnings projected at $0.56 to $0.60 per share, significantly below analyst expectations of $0.85, leading to a selloff and reflecting market concerns about future growth.
- Market Reaction: Despite a 45% decline in Wendy's stock over the past year, retail sentiment on social media indicates an
See More
Trian Fund Increases Stakes in Industrial and Healthcare Stocks
- Portfolio Adjustment: Trian Fund Management's latest 13F filing for Q4 2025 reveals an increase in stakes in major industrial and healthcare companies while trimming cyclical financial positions, indicating a cautious outlook on the economic landscape.
- Shift in Acquisition Strategy: Nelson Peltz hinted at a potential shift towards direct buyouts rather than traditional proxy fights, suggesting that this strategy could enable faster implementation of business strategies and enhance investment returns.
- Strong Performance of GE Aerospace: One of Trian's top bets, GE Aerospace, has benefited from robust demand in defense and commercial aviation, with strong order backlogs and ramped-up engine production, leading to a stock increase of over 55% in the past year, closing up 3.7% at $327.08.
- Market Trend Analysis: Benzinga's data indicates favorable price trends for GE Aerospace's stock across various time periods, along with strong Momentum and Quality rankings, reflecting sustained market confidence in the company's future prospects.
See More
Wendy's Stock Rallies Amid Acquisition Speculation
- Guidance Downgrade: Wendy's projected adjusted EPS for 2026 at 56 to 60 cents, significantly below the 86-cent consensus, leading to a 52-week low in stock price, reflecting shrinking margins and double-digit declines in U.S. same-store sales.
- Acquisition Speculation: Trian highlighted the potential for “one or more” strategic moves, including acquisitions or extraordinary transactions, which could grant control to Trian and partners, possibly leading to a delisting, thus igniting speculative trading in the stock.
- Analyst Target Cuts: The stock carries a Hold rating with an average price target of $8.75, with BMO Capital, Evercore ISI, and Goldman Sachs lowering their targets to $9.00, $8.00, and $7.00 respectively on February 17, indicating cautious sentiment regarding the company's future performance.
- Stock Price Surge: On Wednesday, Wendy's shares rose by 15.57% to $8.09, suggesting that investors are engaging in short-covering and bargain-hunting following the recent lows, likely influenced by Trian's acquisition discussions.
See More
Wendy's Stock Surges 14.8% Amid Peltz Stake Considerations
- Investor Interest: Nelson Peltz disclosed in an SEC filing that he holds over a 16% stake in Wendy's (WEN) and is considering options to buy more shares or sell part of his stake, indicating a strong belief in the company's undervaluation that could spark market interest in its future strategies.
- Historical Relationship: Peltz's nearly two-decade relationship with Wendy's has involved acquisitions and activist investments that have driven company changes, highlighting his significant influence on corporate governance and strategic direction, which may bolster investor confidence.
- Market Performance: Wendy's stock surged 14.8% on Wednesday, crossing back over the $8 mark, reflecting positive market expectations regarding potential actions from Peltz, thereby enhancing investor sentiment about the company's future performance.
- Sales Challenges: Despite a same-store sales decline of 11.3% in Q4 2025, Wendy's aims to achieve an adjusted EPS target of $0.56 to $0.60 in 2026 through its
See More
Wendy's Company Responds to Trian Fund Management
- Strategic Review: The Wendy's Company's Board and management regularly assess strategic priorities to maximize shareholder value, demonstrating a strong commitment to shareholder interests.
- Project Fresh Execution: During the Q4 2025 earnings call, the company emphasized the urgent execution of its 'Project Fresh' turnaround plan to strengthen its U.S. business while continuing robust international growth, indicating confidence in future performance.
- Forward-Looking Statements: The press release includes forward-looking statements based on the company's expectations, which may be affected by various risks and uncertainties, cautioning investors about potential market fluctuations.
- Global Scale: Wendy's and its franchisees employ hundreds of thousands across more than 7,000 restaurants worldwide, showcasing its significant influence and market share in the fast-food industry.
See More
Wendy's Shares Surge 17.5% on Investor Catalyst
- Investor-Driven Change: Longtime investor Nelson Peltz indicated he may push for changes at Wendy's, aiming to boost the company's stock price, which surged 16.8%, reflecting market anticipation for future transformations.
- Shareholder Engagement Plans: Peltz's hedge fund Trian Asset Management disclosed in an SEC filing that it has engaged with potential financing sources and strategic partners to explore transactions that could enhance shareholder value, suggesting significant governance changes may be on the horizon.
- Persistent Stock Decline: Despite Wednesday's gains, Wendy's shares have plummeted nearly 42% over the past year, highlighting the ongoing challenges the company faces post-pandemic, particularly the impact of reduced foot traffic on performance.
- Earnings Guidance Miss: While Wendy's fourth-quarter results exceeded expectations, its 2026 profit guidance fell short of Wall Street's forecasts, prompting analysts to cut price targets, which further exacerbated market concerns about the company's future performance.
See More
Nelson Peltz Increases Stake in Wendy's Amid Strategic Review
- Stake Holding: According to a filing, Nelson Peltz, founder of Trian Fund Management, holds a 16.24% stake in Wendy's, indicating his ongoing interest and investment intent in the company.
- Investment Strategy: Peltz is considering options to increase or decrease his economic exposure through financial instruments or agreements with other parties, which could impact shareholder interests and reflects his strategic thinking about the company's future.
- Financial Outlook: Wendy's forecast for FY2026 is disappointing, with earnings projected at $0.56 to $0.60 per share, significantly below analyst expectations of $0.85, leading to a selloff and reflecting market concerns about future growth.
- Market Reaction: Despite a 45% decline in Wendy's stock over the past year, retail sentiment on social media indicates an
See More
Trian Fund Increases Stakes in Industrial and Healthcare Stocks
- Portfolio Adjustment: Trian Fund Management's latest 13F filing for Q4 2025 reveals an increase in stakes in major industrial and healthcare companies while trimming cyclical financial positions, indicating a cautious outlook on the economic landscape.
- Shift in Acquisition Strategy: Nelson Peltz hinted at a potential shift towards direct buyouts rather than traditional proxy fights, suggesting that this strategy could enable faster implementation of business strategies and enhance investment returns.
- Strong Performance of GE Aerospace: One of Trian's top bets, GE Aerospace, has benefited from robust demand in defense and commercial aviation, with strong order backlogs and ramped-up engine production, leading to a stock increase of over 55% in the past year, closing up 3.7% at $327.08.
- Market Trend Analysis: Benzinga's data indicates favorable price trends for GE Aerospace's stock across various time periods, along with strong Momentum and Quality rankings, reflecting sustained market confidence in the company's future prospects.
See More
