Back to top

Image: Bigstock

Wendy's (WEN) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates

Read MoreHide Full Article

For the quarter ended September 2026, Wendy's (WEN - Free Report) reported revenue of $546.99 million, down 0.5% over the same period last year. EPS came in at $0.13, compared to $0.24 in the year-ago quarter.

The reported revenue represents a surprise of +1.4% over the Zacks Consensus Estimate of $539.44 million. With the consensus EPS estimate being $0.10, the EPS surprise was +30%.

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.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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:
  • Same-Restaurant - International: -2.2% versus -2% estimated by five analysts on average.
  • Same-Restaurant - U.S.: -5.7% versus the five-analyst average estimate of -6.6%.
  • Number of restaurants - Total: 7,194 compared to the 7,189 average estimate based on five analysts.
  • Number of restaurants - US: 5,711 compared to the 5,708 average estimate based on four analysts.
  • Number of restaurants - International: 1,483 versus 1,483 estimated by four analysts on average.
  • Revenues- Advertising funds: $111.37 million versus $107.16 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +4.1% change.
  • Revenues- Sales at Company-operated restaurants: $234.87 million compared to the $227.75 million average estimate based on six analysts. The reported number represents a change of +0.7% year over year.
  • Revenues- Franchise royalty: $119.42 million compared to the $115.9 million average estimate based on five analysts. The reported number represents a change of -6.6% year over year.
  • Revenues- Franchise fees: $22.89 million versus the five-analyst average estimate of $23.18 million. The reported number represents a year-over-year change of -5.4%.
  • Revenues- Franchise rental income: $58.46 million compared to the $54.7 million average estimate based on five analysts. The reported number represents a change of +2% year over year.
  • Systemwide sales- Total: $3.33 billion compared to the $3.28 billion average estimate based on three analysts. The reported number represents a change of -6% year over year.
  • Systemwide sales- International systemwide: $549.4 million versus the three-analyst average estimate of $553.94 million. The reported number represents a year-over-year change of +2.9%.

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

Shares of Wendy's have returned +25.2% over the past month versus the Zacks S&P 500 composite's -0.4% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

Published in