Wendy's has withdrawn its full-year 2026 financial outlook and slashed its quarterly dividend to $0.07 per share as new CEO Robert Wright launched a comprehensive turnaround plan. Total adjusted revenue was $443.2 million in the second quarter, with adjusted EBITDA of $124.1 million and adjusted earnings per share of $0.18. U.S. same-restaurant sales fell 7%, driven by a 12.5% traffic decline, while global systemwide sales decreased 6.5%. The company cited commodity cost increases of approximately 9% and labor rate inflation of approximately 4%, and reported a net leverage ratio of 5.0x. Traditionally, the dividend payout was 50% to 60% of adjusted net income, but the reset and a pause on share repurchases in 2026 are intended to free up capital for investments in menu quality, marketing, and operations.
The Wendy’s CoWendy's withdraws 2026 outlook, cuts dividend, and pauses buybacks to fund turnaround amid weak sales and high leverage.
