Wendy’s lowers annual sales forecast as burger chain flags "work to do" in U.S.

Published 08/08/2025, 12:20
Updated 08/08/2025, 12:24
©  Reuters

Investing.com - Wendy’s has cut its outlook for full-year global sales outlook, as the burger chain grapples with input cost pressures and a drop in traffic in the United States.

The company has been rolling out more promotions to entice price-conscious customers wary of eating out during a time of broader economic uncertainty.

But Wendy’s (NASDAQ:WEN), which is also facing a leadership shake-up following the abrupt departure of Kirk Tanner as CEO last month, said sales at its U.S. locations have fallen, while margins at these businesses have been squeezed by commodity inflation and labor expenses.

"In the U.S., we have work to do to improve the overall performance of the business," said Interim CEO Ken Cook in a statement.

Against this backdrop, Wendy’s slashed its annual estimate for global systemwide sales, saying it expects the figure to fall by between 3% to 5%. It had previously anticipated sales would be flat to falling by 2%.

Adjusted earnings before interest, taxes, depreciation, and amortization is also tipped to come in at $505 million to $525 million, below prior projections of $530 million to $545 million.

Still, Wendy’s posted better-than-anticipated adjusted core income of $146.6 million during the second quarter, rising by 2.5% versus a year earlier, thanks in part to a drawdown in advertising spending and higher net franchise fees. Meanwhile, revenue declined by 1.7% year-over-year to $560.9 million, but exceeded estimates.

Shares in Wendy’s were hovering around the flatline in premarket U.S. trading on Friday.

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