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Investing.com -- Wendy’s reported first-quarter earnings that beat analyst expectations on Tuesday, but lowered its full-year 2025 guidance amid a challenging consumer environment. The fast-food chain’s stock edged up 0.2% following the news.
The company posted adjusted earnings per share of $0.23, surpassing the analyst consensus of $0.20. Revenue came in at $534.8 million, also beating estimates of $529.73 million. However, global systemwide sales decreased 1.1% to $3.4 billion, with same-restaurant sales declining 2.1% globally.
Wendy’s (NASDAQ:WEN) U.S. business faced headwinds, with systemwide sales dropping 2.6% and same-restaurant sales falling 2.8% YoY. The international segment fared better, with systemwide sales growing 8.9% and same-restaurant sales increasing 2.3%.
"We continued to deliver for our customers during the first quarter. In the U.S. we held both traffic and dollar share in a challenging consumer environment, and in our International business we grew systemwide sales by 8.9%," said Kirk Tanner, President and Chief Executive Officer.
The company added 68 net new restaurants globally during the quarter and remains on track to deliver full-year net unit growth of 2-3%. Digital sales reached a record 20.3% of total sales.
Wendy’s updated its full-year 2025 outlook, now expecting adjusted earnings per share of $0.92 to $0.98, below the previous guidance range of $0.98 to $1.02 and the analyst consensus of $1.00. The company’s forecast for global systemwide sales growth was also lower, now between -2% and flat for the year.
Despite the challenges, Wendy’s returned $173.5 million to shareholders through dividends and share repurchases in the first quarter.