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Wendy's Gears Up for Q1 Earnings: What's in the Offing for the Stock?
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Key Takeaways
WEN reports Q1 2026 results on May 8; consensus sees a 10-cent EPS (down 50% YoY) and $525.5M in revenues.
WEN leans on Project Fresh and Biggie Deals ($4/$6/$8) to boost value, traffic and engagement.
WEN expects digital, app, loyalty and FreshAI gains, but beef, labor and new investments pressure margins.
The Wendy's Company (WEN - Free Report) is scheduled to report first-quarter 2026 results on May 8, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 14.3%.
WEN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met on one occasion, the average surprise being 12.6%.
WEN’s Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at 10 cents per share, indicating a decline of 50% from a year ago.
The consensus mark for revenues is pegged at $525.5 million, implying an increase of 0.4% from the year-ago quarter.
Factors to Note Ahead of WEN’s Q1 Results
Revenues
Wendy’s first-quarter performance is likely to reflect the early-stage execution of its “Project Fresh” turnaround strategy, which focuses on brand revitalization, operational excellence, system optimization and disciplined capital allocation. Management noted that 2026 will be a rebuilding year as the company works to strengthen franchisee economics and improve customer engagement. Value offerings are expected to have supported affordability perceptions and helped defend traffic trends during the quarter.
Menu innovation is also likely to have contributed to customer engagement in the to-be-reported quarter. Wendy’s has renewed focus on its core hamburger platform built around fresh, never-frozen beef following a period of limited burger innovation in 2025. The recently launched Biggie Deals value platform, with $4, $6 and $8 price tiers, is designed to improve affordability perceptions, broaden appeal and capture incremental snacking occasions. Management also highlighted encouraging early traction from the platform entering 2026.
Digital initiatives are expected to remain an important growth driver. Wendy’s continued to scale its digital business, with U.S. digital sales mix reaching an all-time high of 20.6% in the fourth quarter of 2025. The company noted that improvements to its mobile app, increased social engagement, loyalty growth and the rollout of FreshAI automated ordering technology are supporting customer engagement and operational efficiency.
International operations are likely to have been another positive contributor in the quarter under review. The company continues to benefit from strong development momentum in markets such as Canada, Mexico and the Philippines, supported by new restaurant openings and localized marketing initiatives. Our model predicts total U.S. systemwide same-restaurant sales will decline 3.6%, while International systemwide same-restaurant sales will increase 1.8% versus prior-year levels.
Margins
Margins are likely to have remained under pressure from labor and commodity inflation, particularly elevated beef costs. Additional investments in upgraded menu ingredients, restaurant technology and field support teams under Project Fresh are also expected to have weighed on margins during the quarter. Moreover, general and administrative expenses are likely to have increased due to higher spending on field operations, digital infrastructure, incentive compensation and stock-based compensation.
At the same time, margins may benefit modestly from labor efficiencies and operational improvements across company-operated restaurants.
What Does the Zacks Model Unveil for WEN?
Our proven model doesn’t predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Wendy's Earnings ESP: WEN has an Earnings ESP of -0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank of Wendy's: WEN currently has a Zacks Rank #4 (Sell).
Stocks Poised to Beat on Earnings
Here are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
In the to-be-reported quarter, CAVA’s earnings are expected to decline 22.7% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 26.5%.
Shake Shack Inc. (SHAK - Free Report) currently has an Earnings ESP of +19.41% and a Zacks Rank of 3.
In the to-be-reported quarter, Shake Shack’s earnings are expected to register a 21.4% year-over-year decline. Shake Shack’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.3%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank of 3 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 9.5% year-over-year decline. Sweetgreen’s earnings matched estimates in one of the trailing four quarters and missed in the other three, with an average miss of 38%.
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Wendy's Gears Up for Q1 Earnings: What's in the Offing for the Stock?
Key Takeaways
The Wendy's Company (WEN - Free Report) is scheduled to report first-quarter 2026 results on May 8, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 14.3%.
WEN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and met on one occasion, the average surprise being 12.6%.
WEN’s Q1 Estimates
The Zacks Consensus Estimate for earnings is pegged at 10 cents per share, indicating a decline of 50% from a year ago.
The Wendy's Company Price and EPS Surprise
The Wendy's Company price-eps-surprise | The Wendy's Company Quote
The consensus mark for revenues is pegged at $525.5 million, implying an increase of 0.4% from the year-ago quarter.
Factors to Note Ahead of WEN’s Q1 Results
Revenues
Wendy’s first-quarter performance is likely to reflect the early-stage execution of its “Project Fresh” turnaround strategy, which focuses on brand revitalization, operational excellence, system optimization and disciplined capital allocation. Management noted that 2026 will be a rebuilding year as the company works to strengthen franchisee economics and improve customer engagement. Value offerings are expected to have supported affordability perceptions and helped defend traffic trends during the quarter.
Menu innovation is also likely to have contributed to customer engagement in the to-be-reported quarter. Wendy’s has renewed focus on its core hamburger platform built around fresh, never-frozen beef following a period of limited burger innovation in 2025. The recently launched Biggie Deals value platform, with $4, $6 and $8 price tiers, is designed to improve affordability perceptions, broaden appeal and capture incremental snacking occasions. Management also highlighted encouraging early traction from the platform entering 2026.
Digital initiatives are expected to remain an important growth driver. Wendy’s continued to scale its digital business, with U.S. digital sales mix reaching an all-time high of 20.6% in the fourth quarter of 2025. The company noted that improvements to its mobile app, increased social engagement, loyalty growth and the rollout of FreshAI automated ordering technology are supporting customer engagement and operational efficiency.
International operations are likely to have been another positive contributor in the quarter under review. The company continues to benefit from strong development momentum in markets such as Canada, Mexico and the Philippines, supported by new restaurant openings and localized marketing initiatives. Our model predicts total U.S. systemwide same-restaurant sales will decline 3.6%, while International systemwide same-restaurant sales will increase 1.8% versus prior-year levels.
Margins
Margins are likely to have remained under pressure from labor and commodity inflation, particularly elevated beef costs. Additional investments in upgraded menu ingredients, restaurant technology and field support teams under Project Fresh are also expected to have weighed on margins during the quarter. Moreover, general and administrative expenses are likely to have increased due to higher spending on field operations, digital infrastructure, incentive compensation and stock-based compensation.
At the same time, margins may benefit modestly from labor efficiencies and operational improvements across company-operated restaurants.
What Does the Zacks Model Unveil for WEN?
Our proven model doesn’t predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Wendy's Earnings ESP: WEN has an Earnings ESP of -0.49%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank of Wendy's: WEN currently has a Zacks Rank #4 (Sell).
Stocks Poised to Beat on Earnings
Here are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
CAVA Group, Inc. (CAVA - Free Report) currently has an Earnings ESP of +11.61% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, CAVA’s earnings are expected to decline 22.7% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, the average surprise being 26.5%.
Shake Shack Inc. (SHAK - Free Report) currently has an Earnings ESP of +19.41% and a Zacks Rank of 3.
In the to-be-reported quarter, Shake Shack’s earnings are expected to register a 21.4% year-over-year decline. Shake Shack’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.3%.
Sweetgreen, Inc. (SG - Free Report) has an Earnings ESP of +6.67% and a Zacks Rank of 3 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 9.5% year-over-year decline. Sweetgreen’s earnings matched estimates in one of the trailing four quarters and missed in the other three, with an average miss of 38%.