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Wendy's (WEN) Reports Q1 Earnings: What Key Metrics Have to Say

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Wendy's (WEN - Free Report) reported $540.64 million in revenue for the quarter ended March 2026, representing a year-over-year increase of 3.3%. EPS of $0.12 for the same period compares to $0.20 a year ago.

The reported revenue represents a surprise of +2.88% over the Zacks Consensus Estimate of $525.51 million. With the consensus EPS estimate being $0.10, the EPS surprise was +16.39%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Wendy's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
  • Number of restaurants - Total: 7,251 versus the six-analyst average estimate of 7,301.
  • Number of restaurants - Company-operated - Total: 431 compared to the 433 average estimate based on six analysts.
  • Same-Restaurant - U.S.: -7.8% versus -6.6% estimated by six analysts on average.
  • Number of restaurants - Franchised - Total: 6,820 versus the six-analyst average estimate of 6,868.
  • Revenues- Franchise rental income: $58.9 million versus $56.13 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
  • Revenues- Sales at Company-operated restaurants: $225.5 million compared to the $229.22 million average estimate based on six analysts. The reported number represents a change of +2.7% year over year.
  • Revenues- Advertising funds: $108.34 million versus the six-analyst average estimate of $94.06 million. The reported number represents a year-over-year change of +8%.
  • Revenues- Franchise royalty revenue and fees: $147.9 million versus the six-analyst average estimate of $139.96 million. The reported number represents a year-over-year change of +1.9%.
  • Revenues- Franchise fees: $31.71 million versus $23.35 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +35.1% change.
  • Revenues- Franchise royalty: $116.19 million versus $116.53 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -4.5% change.
  • Systemwide sales- Total: $3.22 billion versus the four-analyst average estimate of $3.22 billion. The reported number represents a year-over-year change of -5%.
  • Systemwide sales- International systemwide: $518 million versus $512.08 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +9.5% change.

View all Key Company Metrics for Wendy's here>>>

Shares of Wendy's have returned -2.1% over the past month versus the Zacks S&P 500 composite's +11% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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