2 hours ago
On August 7, Wendy's (NASDAQ:WEN) held its second-quarter earnings call under new President and CEO Robert Wright, a Wendy's veteran of 28 years who most recently ran Potbelly, joined by new CFO Steven Cirulis. Global systemwide sales fell 6.5%, and the company pulled its full-year outlook entirely. Wright did not soften the message: traffic is down, value has slipped, and franchisee economics are strained.
Not everything in the quarter was bleak. US company-operated restaurants outperformed the broader system by 280 basis points, and customer satisfaction scores in the US improved even as traffic fell. Wendy's also kept building, opening 21 new US restaurants and 27 internationally, with systemwide sales abroad still growing 3.4%. Strip out a soft Canadian market, and international same-restaurant sales were actually positive, with sales up 8.6%.
Wright laid out five strategic priorities going forward: rebuilding the menu around quality and value, sharpening marketing around a consistent brand narrative, tightening restaurant operations, improving the digital and loyalty experience, and getting back to unit growth. He promised a full strategic plan by the next quarterly update and framed the dividend cut as a deliberate move to free up capital for that turnaround rather than a sign of distress.
The core problem is that customers are visiting less often. US same-restaurant sales dropped 7.0%, driven by a 12.5% decline in traffic that a 5.6% jump in average check could not offset. Wright pointed to eroding food quality, an increasingly complex and less compelling Biggie value platform, and inconsistent drive-thru execution as root causes. Commodity costs rose about 9% in the quarter, including continued beef inflation, while labor costs climbed roughly 4%, squeezing US company-operated restaurant margin down to 13.8%. Adjusted EBITDA fell to $124.1 million, down $22.5 million from a year earlier, and adjusted EPS came in at just $0.18. The company also closed 289 US restaurants in the first half of the year.
Management does not expect systemwide sales to return to growth in either the third or fourth quarter, and it cut the quarterly dividend to $0.07 per share while pausing share buybacks for 2026 to preserve cash. Net leverage stood at 5.0 times, and roughly $430 million of debt maturing in 2028 will need refinancing in the coming months.
#quarter #systemwide #TRAFFIC #down
Not everything in the quarter was bleak. US company-operated restaurants outperformed the broader system by 280 basis points, and customer satisfaction scores in the US improved even as traffic fell. Wendy's also kept building, opening 21 new US restaurants and 27 internationally, with systemwide sales abroad still growing 3.4%. Strip out a soft Canadian market, and international same-restaurant sales were actually positive, with sales up 8.6%.
Wright laid out five strategic priorities going forward: rebuilding the menu around quality and value, sharpening marketing around a consistent brand narrative, tightening restaurant operations, improving the digital and loyalty experience, and getting back to unit growth. He promised a full strategic plan by the next quarterly update and framed the dividend cut as a deliberate move to free up capital for that turnaround rather than a sign of distress.
The core problem is that customers are visiting less often. US same-restaurant sales dropped 7.0%, driven by a 12.5% decline in traffic that a 5.6% jump in average check could not offset. Wright pointed to eroding food quality, an increasingly complex and less compelling Biggie value platform, and inconsistent drive-thru execution as root causes. Commodity costs rose about 9% in the quarter, including continued beef inflation, while labor costs climbed roughly 4%, squeezing US company-operated restaurant margin down to 13.8%. Adjusted EBITDA fell to $124.1 million, down $22.5 million from a year earlier, and adjusted EPS came in at just $0.18. The company also closed 289 US restaurants in the first half of the year.
Management does not expect systemwide sales to return to growth in either the third or fourth quarter, and it cut the quarterly dividend to $0.07 per share while pausing share buybacks for 2026 to preserve cash. Net leverage stood at 5.0 times, and roughly $430 million of debt maturing in 2028 will need refinancing in the coming months.
#quarter #systemwide #TRAFFIC #down
9 days ago
Interested in The Wendy's Company? Here are five stocks we like better.
Wendy's reported weak second-quarter results: Global systemwide sales fell 6.5%, U.S. same-restaurant sales declined 7% as traffic dropped 12.5%, adjusted EBITDA decreased to $124.1 million, and adjusted EPS was $0.18.
New CEO Bob Wright said the brand's quality, value proposition, operations and marketing have deteriorated. Wendy's is developing a turnaround plan focused on menu quality and pricing, branding, restaurant execution, digital capabilities and franchisee economics.
The company withdrew its 2026 financial outlook and expects continued pressure on margins, EBITDA and earnings amid weak sales, 5%–6% commodity inflation and higher turnaround-related expenses. Leverage is expected to remain elevated, and Wendy's does not anticipate share repurchases in 2026.
2 Short Squeezes for Summer Speculation: What the Bears Are Getting Wrong
#sales #restaurant #interested #here
Wendy's reported weak second-quarter results: Global systemwide sales fell 6.5%, U.S. same-restaurant sales declined 7% as traffic dropped 12.5%, adjusted EBITDA decreased to $124.1 million, and adjusted EPS was $0.18.
New CEO Bob Wright said the brand's quality, value proposition, operations and marketing have deteriorated. Wendy's is developing a turnaround plan focused on menu quality and pricing, branding, restaurant execution, digital capabilities and franchisee economics.
The company withdrew its 2026 financial outlook and expects continued pressure on margins, EBITDA and earnings amid weak sales, 5%–6% commodity inflation and higher turnaround-related expenses. Leverage is expected to remain elevated, and Wendy's does not anticipate share repurchases in 2026.
2 Short Squeezes for Summer Speculation: What the Bears Are Getting Wrong
#sales #restaurant #interested #here
12 days ago
By Karen Roman
Krispy Kreme, Inc. (Nasdaq: DNUT) said second quarter adjusted EBITDA grew 43.2% to $28.8 million, and net revenue decreased 12.8% to $331.0 million due to its refranchising strategy and the closure of underperforming stores.
System-wide sales increased 1.1% in constant currency terms to reach $497.3 million, and rose 2.6% excluding sales attributable to the now-ended McDonald's U.S. partnership, it stated.
The company announced it is maintaining the fiscal outlook for 2026 and expects net revenue between $1.25 billion to $1.35 billion and adjusted EBITDA of $140 million to $150 million.
"The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth," said Josh Charlesworth, Krispy Kreme CEO. "Demand for our fresh, iconic doughnuts across the U.S. and international markets drove systemwide sales growth of 2.6% excluding the impact of the now-ended McDonald's USA partnership."
#quarter #revenue
Krispy Kreme, Inc. (Nasdaq: DNUT) said second quarter adjusted EBITDA grew 43.2% to $28.8 million, and net revenue decreased 12.8% to $331.0 million due to its refranchising strategy and the closure of underperforming stores.
System-wide sales increased 1.1% in constant currency terms to reach $497.3 million, and rose 2.6% excluding sales attributable to the now-ended McDonald's U.S. partnership, it stated.
The company announced it is maintaining the fiscal outlook for 2026 and expects net revenue between $1.25 billion to $1.35 billion and adjusted EBITDA of $140 million to $150 million.
"The second quarter highlighted continued significant progress on our turnaround to strengthen the balance sheet, reduce leverage, and drive sustainable, profitable growth," said Josh Charlesworth, Krispy Kreme CEO. "Demand for our fresh, iconic doughnuts across the U.S. and international markets drove systemwide sales growth of 2.6% excluding the impact of the now-ended McDonald's USA partnership."
#quarter #revenue
19 days ago
Jersey Mike's (JMKE) made its public debut on Thursday at $21 per share, and investors were eager to get a bite of the sandwich chain.
The company, backed by Blackstone Inc. (BX) and the Abu Dhabi Investment Authority, offered more than 43 million shares. It opened just below its initial public offering (IPO) price of $23, raising $913 million and valuing the company at $7.3 billion. It is now officially listed under the ticker symbol "JMKE" on the New York Stock Exchange.
Blackstone took a majority stake in the chain in November of 2024 and soon after tapped industry veteran and former WingStop (WING) CEO Charlie Morrison to lead the company.
This public debut, which is one of the largest in the restaurant industry, marks the next chapter for the Point Pleasant, New Jersey-based chain, but the business is already booming.
According to the regulatory filing, Jersey Mike's same-store sales grew by 50% between 2020 and 2025. In 2025, systemwide sales increased 13% year over year to reach $4.3 billion.
#blackstone #debut
The company, backed by Blackstone Inc. (BX) and the Abu Dhabi Investment Authority, offered more than 43 million shares. It opened just below its initial public offering (IPO) price of $23, raising $913 million and valuing the company at $7.3 billion. It is now officially listed under the ticker symbol "JMKE" on the New York Stock Exchange.
Blackstone took a majority stake in the chain in November of 2024 and soon after tapped industry veteran and former WingStop (WING) CEO Charlie Morrison to lead the company.
This public debut, which is one of the largest in the restaurant industry, marks the next chapter for the Point Pleasant, New Jersey-based chain, but the business is already booming.
According to the regulatory filing, Jersey Mike's same-store sales grew by 50% between 2020 and 2025. In 2025, systemwide sales increased 13% year over year to reach $4.3 billion.
#blackstone #debut
19 days ago
Jersey Mike's (JMKE) made its public debut on Thursday at $21 per share, and investors were eager to get a bite of the sandwich chain.
The company, backed by Blackstone Inc. (BX) and the Abu Dhabi Investment Authority, offered more than 43 million shares. It opened just below its initial public offering (IPO) price of $23, raising $913 million and valuing the company at $7.3 billion. It is now officially listed under the ticker symbol "JMKE" on the New York Stock Exchange.
Blackstone took a majority stake in the chain in November of 2024 and soon after tapped industry veteran and former WingStop (WING) CEO Charlie Morrison to lead the company.
This public debut, which is one of the largest in the restaurant industry, marks the next chapter for the Point Pleasant, New Jersey-based chain, but the business is already booming.
According to the regulatory filing, Jersey Mike's same-store sales grew by 50% between 2020 and 2025. In 2025, systemwide sales increased 13% year over year to reach $4.3 billion.
#chain #company #billion #industry
The company, backed by Blackstone Inc. (BX) and the Abu Dhabi Investment Authority, offered more than 43 million shares. It opened just below its initial public offering (IPO) price of $23, raising $913 million and valuing the company at $7.3 billion. It is now officially listed under the ticker symbol "JMKE" on the New York Stock Exchange.
Blackstone took a majority stake in the chain in November of 2024 and soon after tapped industry veteran and former WingStop (WING) CEO Charlie Morrison to lead the company.
This public debut, which is one of the largest in the restaurant industry, marks the next chapter for the Point Pleasant, New Jersey-based chain, but the business is already booming.
According to the regulatory filing, Jersey Mike's same-store sales grew by 50% between 2020 and 2025. In 2025, systemwide sales increased 13% year over year to reach $4.3 billion.
#chain #company #billion #industry
20 days ago
McDonald's (NYSE:MCD) is among the top dividend stocks in President Trump's portfolio, according to his disclosures earlier this year. MCD has about 50 years of consecutive dividend increases under its belt. The company is scheduled to announce earnings on August 4. The stock is down about 10% so far this year. Is this an opportunity to buy?
McDonald's real business isn't food. About 95% of its restaurants are run by franchisees, not the company. McDonald's keeps the land and the buildings, and it collects rent and royalties on top of the franchise fee. Franchised locations run at roughly an 83% operating margin. Company-run restaurants sit closer to 12%, before corporate costs even get factored in. Franchisees eat the labor bills, the food cost swings, the day-to-day headaches. McDonald's just cashes the check.
Revenue was up 9.4% year over year. Comparable sales grew 3.8% globally and 3.9% in the US, and a chunk of that came from the McValue menu plus a Netflix crossover with K-Pop Demon Hunters that apparently got younger customers walking in.
Systemwide sales (this counts every franchised store, not just company-owned ones) were up 11% on a reported basis.
The Dividend Case, In Plain Numbers
#company #Dividend #Food #sales
McDonald's real business isn't food. About 95% of its restaurants are run by franchisees, not the company. McDonald's keeps the land and the buildings, and it collects rent and royalties on top of the franchise fee. Franchised locations run at roughly an 83% operating margin. Company-run restaurants sit closer to 12%, before corporate costs even get factored in. Franchisees eat the labor bills, the food cost swings, the day-to-day headaches. McDonald's just cashes the check.
Revenue was up 9.4% year over year. Comparable sales grew 3.8% globally and 3.9% in the US, and a chunk of that came from the McValue menu plus a Netflix crossover with K-Pop Demon Hunters that apparently got younger customers walking in.
Systemwide sales (this counts every franchised store, not just company-owned ones) were up 11% on a reported basis.
The Dividend Case, In Plain Numbers
#company #Dividend #Food #sales
1 month ago
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Papa Murphy's is headed for more closures.
Parent company MTY Food Group told investors during the company's Q2 earnings call that it expects to shutter 68 underperforming corporately owned restaurants over the next nine months. Of those, between 45 and 50 stores will be Papa Murphy's locations.
Most of the shutdowns will occur in the third quarter, with the first scheduled to begin this week. The 68 closures represent about 1 percent of MTY's systemwide restaurant base.
The move comes after MTY attempted to revive a collection of stores it took back from Papa Murphy's franchisees about two years ago.
Papa Murphy's is headed for more closures.
Parent company MTY Food Group told investors during the company's Q2 earnings call that it expects to shutter 68 underperforming corporately owned restaurants over the next nine months. Of those, between 45 and 50 stores will be Papa Murphy's locations.
Most of the shutdowns will occur in the third quarter, with the first scheduled to begin this week. The 68 closures represent about 1 percent of MTY's systemwide restaurant base.
The move comes after MTY attempted to revive a collection of stores it took back from Papa Murphy's franchisees about two years ago.
