Wendy's Reports Decline in Revenue and Profitability for Q2 and First Half of 2025

Wendy's Company reported its financial results for the second quarter and first half of 2025, revealing a decline in both revenue and profitability compared to the same periods in 2024. For the three months ended June 29, 2025, total revenues amounted to $560.9 million, a decrease of 1.7% from $570.7 million in the prior year. Net income for the quarter was $55.1 million, slightly up from $54.6 million, resulting in a basic net income per share of $0.29, compared to $0.27 in the same quarter last year. For the first six months, revenues decreased by 1.9% to $1.08 billion, while net income fell to $94.3 million from $96.6 million in 2024.

The company's performance was impacted by a 2.9% decline in global same-restaurant sales, with U.S. same-restaurant sales down 3.6%. However, international same-restaurant sales increased by 1.8%. The decrease in sales was attributed to reduced customer traffic, although this was partially offset by higher average checks. Wendy's also reported a decrease in systemwide sales, which fell to $3.66 billion in the second quarter, down from $3.73 billion in the same period last year.

Operationally, Wendy's continued its strategic focus on optimizing its restaurant system, with a total of 7,334 restaurants globally as of June 29, 2025. This includes 5,967 locations in the U.S., of which 387 are company-operated. The company facilitated one franchise transfer during the quarter and completed the sale of two company-operated restaurants to franchisees. Digital sales have also seen growth, accounting for approximately 20.5% of global systemwide sales, up from 17.0% in the previous year.

In terms of financial health, Wendy's reported cash, cash equivalents, and restricted cash totaling $330.1 million as of June 29, 2025. The company has a revolving credit facility of $300 million and remains compliant with its debt covenants. However, cash used in financing activities increased significantly to $272.7 million, primarily due to stock repurchases totaling $186 million during the first half of the year. Looking ahead, Wendy's plans to continue its focus on digital growth and operational excellence while managing inflationary pressures on labor and commodities.