Wendy’s Q3 2026 results show sharp profit drop as “Dave’s Way” turnaround plan launches
+5 new sources since this summary was written
Wendy’s reported third‑quarter net income of $15.1 million, a 65.9% decline year‑over‑year, with diluted GAAP earnings of $0.08 per share. Total revenue slipped 0.5% to $547.0 million and operating profit fell 39.3% to $55.8 million. U.S. same‑restaurant sales declined 5.7% while international sales fell 2.2%, and systemwide sales were down 5.9% on a constant‑currency basis. The company introduced its multi‑year “Dave’s Way” plan, highlighting a potential $200 million of restaurant‑level EBITDA from a new breakfast daypart and a letter of intent to acquire up to 163 Meritage restaurants.
Why it matters
The CFO said the breakfast initiative could unlock up to $200 million of EBITDA, which would improve future profitability if realized. The company’s free cash flow fell to $174.2 million for the nine‑month period, limiting cash available for further investments ().
Key facts
- 1Third‑quarter net income was $15.1 million, down 65.9% YoY (). securities.io
- 2Diluted GAAP earnings per share were $0.08, versus $0.23 in the prior year (). securities.io
- 3Total revenue for the quarter was $547.0 million, a 0.5% decline from $549.5 million (). securities.io
- 4Adjusted revenue was $435.6 million, down 1.6% YoY (). finance.yahoo.com
- 5U.S. same‑restaurant sales fell 5.7% YoY; international same‑restaurant sales fell 2.2% YoY (). securities.io
- 6The breakfast daypart could add up to $200 million of restaurant‑level EBITDA, according to the CFO (). securities.io
Summary written by AlphAI AI Desk from 5 of 5 sources. Not investment advice. Figures are as stated by the linked sources.