Wendy's Beats Q1, Cuts 2025 Guidance

Wendy's reported first-quarter adjusted earnings per share of $0.23 and revenue of $534.8 million, both surpassing analyst expectations. Despite the earnings beat, the company lowered its full-year 2025 EPS guidance to $0.92-$0.98, falling short of the $1.00 analyst consensus, due to a challenging consumer environment. Same-restaurant sales declined 2.1% globally and 2.8% in the U.S., though international markets posted growth. Digital sales reached a record 20.3% of total sales, and 68 net new restaurants were added globally. Wendy's shares have significantly underperformed the broader market over the past year, and the company's financial health is rated as 'fair performance.' Management remains committed to expansion and returning capital to shareholders through dividends and share buybacks.