Wendy's Co
For the period ended Sep 27, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 27, 2026 · Filed Nov 5, 2026
WEN$8.15+2.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-28; filed 2026-08-07.
0000030697-26-000116
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-27; filed 2026-11-05.
0000030697-26-000179
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 100 previous paragraphs and 104 current paragraphs.
39 unchanged; 53 reworded; 12 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 28 previous and 28 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
As we continue to evolve our strategic priorities, certain actions previously undertaken as part of the Company’s former initiative, Project Fresh, have been incorporated into the broader strategy built on the Company’s foundation of delivering high-quality food, compelling value and a differentiated customer experience. The Company recently announced Dave’s Way, its multi-year strategy focused on growing customer traffic and market share while strengthening restaurant profitability. The five strategic pillars of Dave’s Way include: (1) Our Menu with Quality Food at Real Value; (2) Distinct Branding and Marketing to Drive Demand; (3) Operational Excellence that Delights Customers; (4) A Winning Digital Experience to Build Frequency and (5) Restaurants as an Engine for Growth.
Current report
On November 5, 2026, the Company announced a revision to the breakfast strategy to be location specific, which makes breakfast optional for all U.S. restaurants, allowing franchisees to focus on the dayparts with the greatest opportunity for profitable growth in their business.
Current report
Third Quarter Highlights
Current report
•Global systemwide sales were $3.33 billion in the third quarter of 2026 compared with $3.54 billion in the third quarter of 2025, a decrease of 5.9% on a constant currency basis;
Current report
•Revenues were relatively flat at $547.0 million in the third quarter of 2026 compared with $549.5 million in the third quarter of 2025;
Current report
•Income before income taxes decreased 59.8% to $25.4 million in the third quarter of 2026 compared with $63.2 million in the third quarter of 2025;
Current report
•Revenues increased 1.5% to $1.66 billion in the first nine months of 2026 compared with $1.63 billion in the first nine months of 2025;
Current report
•Income before income taxes decreased 44.3% to $108.2 million in the first nine months of 2026 compared with $194.1 million in the first nine months of 2025;
Current report
In connection with Dave’s Way and the Company’s broader business transformation, the Company has incurred elevated costs associated with certain strategic initiatives during the third quarter of 2026. These transformational costs, which are infrequent or unusual in nature and outside of the Company’s normal ongoing operations, primarily include third-party consulting and professional fees related to Dave’s Way, as well as costs associated with discrete senior management and organizational actions.
Current report
The increase in general and administrative expenses during the third quarter of 2026 was primarily due to (1) strategic initiative expenses associated with Dave’s Way and other strategic and organizational activities and (2) lower share-based compensation in the prior year as a result of the departure of the Company’s previous President and Chief Executive Officer.
Current report
The increase in general and administrative expenses during the first nine months of 2026 was primarily due to (1) strategic initiative expenses associated with Dave’s Way and other strategic and organizational activities, (2) professional services and (3) employee compensation and benefits. General and administrative expenses also increased due to (1) lower share-based compensation in the prior year as a result of the departure of the Company’s previous President and Chief Executive Officer and (2) an increase in incentive compensation accruals, reflecting higher operating performance as compared to plan in 2026 versus 2025.
Current report
During the three months ended September 27, 2026, the Company recognized costs associated with its new portfolio optimization initiative of $2.8 million, which were primarily comprised of third-party and other costs. The Company’s new portfolio optimization initiative is focused on strengthening restaurant profitability, aligning restaurants with high-performing operators and creating greater long-term value across the system.
Removed paragraphs (8)
Previous report
While it evaluates its strategy, the Company is taking action across five areas: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency and restaurants as an engine for growth.
Previous report
Second Quarter Highlights
Previous report
•Global systemwide sales were $3.42 billion in the second quarter of 2026 compared with $3.66 billion in the second quarter of 2025, a decrease of 6.5% on a constant currency basis;
Previous report
•Revenues increased 1.7% to $570.6 million in the second quarter of 2026 compared with $560.9 million in the second quarter of 2025;
Previous report
•Income before income taxes decreased 36.0% to $48.6 million in the second quarter of 2026 compared with $75.9 million in the second quarter of 2025;
Previous report
•Revenues increased 2.5% to $1.11 billion in the first six months of 2026 compared with $1.08 billion in the first six months of 2025;
Previous report
•Income before income taxes decreased 36.8% to $82.7 million in the first six months of 2026 compared with $130.8 million in the first six months of 2025;
Previous report
The increase in general and administrative expenses during the second quarter and the first six months of 2026 was primarily due to investments in (1) professional services and (2) employee compensation and benefits.
Reworded paragraphs (53)
Previous wording
Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving high quality food. Wendy’s opened its first restaurant in Columbus, Ohio in 1969. Today, Wendy’s is one of the largest quick-service restaurant companies in the hamburger sandwich segment in the U.S. based on traffic and dollar share, and the third largest globally with 7,180 restaurants in the U.S. and 38 foreign countries and U.S. territories as of June 28, 2026.
Current wording
Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving high quality food. Wendy’s opened its first restaurant in Columbus, Ohio in 1969. Today, Wendy’s is one of the largest quick-service restaurant companies in the hamburger sandwich segment in the U.S. based on traffic and dollar share, and the third largest globally with 7,194 restaurants in the U.S. and 38 foreign countries and U.S. territories as of September 27, 2026.
Previous wording
Each Wendy’s restaurant offers an extensive menu specializing in hamburger sandwiches and featuring chicken sandwiches, which are prepared to order with the customer’s choice of toppings and condiments. Wendy’s menu also includes chicken tenders and nuggets, chili, french fries, baked potatoes, salads, soft drinks, Frosty® desserts and kids’ meals. In addition, Wendy’s restaurants sell a variety of promotional products on a limited time basis. Wendy’s also offers breakfast in the U.S. and Canada. Wendy’s breakfast menu features a variety of breakfast sandwiches such as the Breakfast Baconator® and sides such as seasoned potatoes.
Current wording
Each Wendy’s restaurant offers an extensive menu specializing in hamburger sandwiches and featuring chicken sandwiches, which are prepared to order with the customer’s choice of toppings and condiments. Wendy’s menu also includes chicken tenders and nuggets, chili, french fries, baked potatoes, salads, soft drinks, Frosty® desserts and kids’ meals. In addition, Wendy’s restaurants sell a variety of promotional products on a limited time basis. Wendy’s also offers breakfast in some restaurants in the U.S. and Canada.
Previous wording
The Company’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. All three- and six-month periods presented herein contain 13 weeks and 26 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods.
Current wording
The Company’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. All three- and nine-month periods presented herein contain 13 weeks and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods.
Previous wording
As of June 28, 2026, the Wendy’s restaurant system was comprised of 7,180 restaurants, with 5,724 Wendy’s restaurants in operation in the U.S. Of the U.S. restaurants, 420 were operated by the Company and 5,304 were operated by a total of 206 franchisees. In addition, at June 28, 2026, there were 1,456 Wendy’s restaurants in operation in 38 foreign countries and U.S. territories. Of the international restaurants, 1,446 were operated by a total of 116 franchisees and 10 were operated by the Company in the United Kingdom (the “U.K.”).
Current wording
As of September 27, 2026, the Wendy’s restaurant system was comprised of 7,194 restaurants, with 5,711 Wendy’s restaurants in operation in the U.S. Of the U.S. restaurants, 422 were operated by the Company and 5,289 were operated by a total of 204 franchisees. In addition, at September 27, 2026, there were 1,483 Wendy’s restaurants in operation in 38 foreign countries and U.S. territories. Of the international restaurants, 1,473 were operated by a total of 116 franchisees and 10 were operated by the Company in the United Kingdom (the “U.K.”).
Previous wording
Wendy’s operating results are impacted by a number of external factors, including commodity costs, labor costs, intense price competition, unemployment and consumer spending levels, general economic and market trends and weather.
Current wording
Wendy’s operating results are impacted by a number of external factors, including commodity costs, labor costs, intense price competition, unemployment and consumer spending levels, general economic and market trends and weather. Further, recent operating results have contributed to financial pressure for certain of our franchisees, which has affected, and may continue to affect, the timing of franchisee payments, and have resulted and may continue to result in payment delays and deferrals. See Note 2 to the Condensed Consolidated Financial Statements contained in Item 1 herein and “Item 1A. Risk Factors” in “Part II. Other Information” for further information.
Previous wording
•International systemwide sales were $546.7 million in the second quarter of 2026 compared with $528.9 million in the second quarter of 2025, an increase of 3.4% on a constant currency basis;
Current wording
•International systemwide sales were $549.4 million in the third quarter of 2026 compared with $534.0 million in the third quarter of 2025, an increase of 3.5% on a constant currency basis;
Previous wording
•Global same-restaurant sales decreased 6.3%, U.S. same-restaurant sales decreased 7.0% and international same-restaurant sales decreased 2.3% compared with the second quarter of 2025;
Current wording
•Global same-restaurant sales decreased 5.2%, U.S. same-restaurant sales decreased 5.7% and international same-restaurant sales decreased 2.2% compared with the third quarter of 2025;
Previous wording
•Global Company-operated restaurant margin was 13.6% in the second quarter of 2026, a decrease of 200 basis points compared with the second quarter of 2025;
Current wording
•Global Company-operated restaurant margin was 11.3% in the third quarter of 2026, a decrease of 110 basis points compared with the third quarter of 2025;
Previous wording
•Digital sales increased to approximately 23.7% of global systemwide sales in the second quarter of 2026 compared with approximately 20.5% in the second quarter of 2025; and
Current wording
•Digital sales increased to approximately 24.9% of global systemwide sales in the third quarter of 2026 compared with approximately 21.0% in the third quarter of 2025; and
Previous wording
•Systemwide restaurant count decreased by 71 net restaurants in the second quarter of 2026.
Current wording
•Systemwide restaurant count increased by 14 net restaurants in the third quarter of 2026.
Previous wording
•Global systemwide sales were $6.64 billion in the first six months of 2026 compared with $7.05 billion in the first six months of 2025, a decrease of 6.0% on a constant currency basis;
Current wording
•Global systemwide sales were $9.97 billion in the first nine months of 2026 compared with $10.59 billion in the first nine months of 2025, a decrease of 6.0% on a constant currency basis;
Previous wording
•International systemwide sales were $1.06 billion in the first six months of 2026 compared with $1.00 billion in the first six months of 2025, an increase of 4.6% on a constant currency basis;
Current wording
•International systemwide sales were $1.61 billion in the first nine months of 2026 compared with $1.54 billion in the first nine months of 2025, an increase of 4.3% on a constant currency basis;
Previous wording
•Global same-restaurant sales decreased 6.5%, U.S. same-restaurant sales decreased 7.4% and international same-restaurant sales decreased 1.4% compared with the first six months of 2025;
Current wording
•Global same-restaurant sales decreased 6.1%, U.S. same-restaurant sales decreased 6.8% and international same-restaurant sales decreased 1.6% compared with the first nine months of 2025;
Previous wording
•Global Company-operated restaurant margin was 12.3% in the first six months of 2026, a decrease of 270 basis points compared with the first six months of 2025;
Current wording
•Global Company-operated restaurant margin was 12.0% in the first nine months of 2026, a decrease of 210 basis points compared with the first nine months of 2025;
Previous wording
•Digital sales increased to approximately 23.6% of global systemwide sales in the first six months of 2026 compared with approximately 20.4% in the first six months of 2025; and
Current wording
•Digital sales increased to approximately 23.9% of global systemwide sales in the first nine months of 2026 compared with approximately 20.6% in the first nine months of 2025; and
Previous wording
•Systemwide restaurant count decreased by 217 net restaurants in the first six months of 2026.
Current wording
•Systemwide restaurant count decreased by 203 net restaurants in the first nine months of 2026.
Previous wording
The tables included throughout this Results of Operations section set forth in millions the Company’s condensed consolidated results of operations for the second quarter and the first six months of 2026 and 2025.
Current wording
The tables included throughout this Results of Operations section set forth in millions the Company’s condensed consolidated results of operations for the third quarter and the first nine months of 2026 and 2025.
Previous wording
(b)During the second quarter of 2026 and 2025, global systemwide sales decreased 6.5% and 1.8%, respectively, U.S. systemwide sales decreased 8.2% and 3.3%, respectively, and international systemwide sales increased 3.4% and 8.7%, respectively, on a constant currency basis. During the first six months of 2026 and 2025, global systemwide sales decreased 6.0% and 1.4%, respectively, U.S. systemwide sales decreased 7.7% and 3.0%, respectively, and international systemwide sales increased 4.6% and 8.8%, respectively, on a constant currency basis.
Current wording
(b)During the third quarter of 2026 and 2025, global systemwide sales decreased 5.9% and 2.6%, respectively, U.S. systemwide sales decreased 7.6% and 4.4%, respectively, and international systemwide sales increased 3.5% and 8.6%, respectively, on a constant currency basis. During the first nine months of 2026 and 2025, global systemwide sales decreased 6.0% and 1.8%, respectively, U.S. systemwide sales decreased 7.7% and 3.4%, respectively, and international systemwide sales increased 4.3% and 8.7%, respectively, on a constant currency basis.
Previous wording
The increase in sales during the second quarter and the first six months of 2026 was primarily due to (1) the impact of the Company’s acquisition of franchise-operated restaurants during the third quarter of 2025 of $15.8 million and $29.4 million, respectively, and (2) net new restaurant development of $2.9 million and $5.9 million, respectively. During the second quarter and the first six months of 2026, these impacts were partially offset by (1) a 4.3% and 4.5% decrease in global Company-operated same-restaurant sales of $9.2 million and $18.6 million, respectively, and (2) the impact of the sale of Company-operated restaurants to franchisees of $3.2 million and $5.2 million, respectively. Company-operated same-restaurant sales during the second quarter and the first six months of 2026 decreased due to a decrease in traffic, partially offset by higher average check.
Current wording
The increase in sales during the third quarter and the first nine months of 2026 was primarily due to (1) the impact of the Company’s acquisition of franchise-operated restaurants during the third quarter of 2025 of $9.5 million and $38.9 million, respectively, and (2) net new restaurant development of $1.4 million and $7.4 million, respectively. During the third quarter and the first nine months of 2026, these impacts were partially offset by (1) a 3.1% and 4.1% decrease in global Company-operated same-restaurant sales of $6.2 million and $24.8 million, respectively, and (2) the impact of the sale of Company-operated restaurants to franchisees of $2.6 million and $7.8 million, respectively. Company-operated same-restaurant sales during the third quarter and the first nine months of 2026 decreased due to a decrease in traffic, partially offset by higher average check.
Previous wording
Franchise royalty revenue during the second quarter and the first six months of 2026 decreased primarily due to a 6.4% and 6.7% decrease in global franchise same-restaurant sales, respectively. Franchise same-restaurant sales during the second quarter and the first six months of 2026 decreased due to a decrease in traffic, partially offset by higher average check.
Current wording
Franchise royalty revenue during the third quarter and the first nine months of 2026 decreased primarily due to a 5.4% and 6.2% decrease in global franchise same-restaurant sales, respectively. Franchise same-restaurant sales during the third quarter and the first nine months of 2026 decreased due to a decrease in traffic, partially offset by higher average check.
Previous wording
The increase in franchise fees during the second quarter and the first six months of 2026 was primarily due to the impact of system optimization related to restaurant closures and hours of operation flexibility.
Current wording
The decrease in franchise fees during the third quarter of 2026 was primarily due to a decrease in other miscellaneous fees. The increase in franchise fees during the first nine months of 2026 was primarily due to the impact of portfolio optimization related to restaurant closures and hours of operation flexibility of $11.2 million, partially offset by a decrease in other miscellaneous fees of $2.1 million.
Previous wording
The decrease in franchise rental income during the second quarter and the first six months of 2026 was primarily due to (1) the impact of assigning certain existing leases to franchisees of $5.3 million and $6.1 million, respectively, and (2) amending certain existing leases during the second quarter of 2026 of $1.0 million. During the second quarter and the first six months of 2026, these changes were partially offset by entering into new leases of $0.5 million and $1.2 million, respectively.
Current wording
The increase in franchise rental income during the third quarter of 2026 was primarily due to (1) the impact of assigning certain existing leases to franchisees in 2025 of $1.8 million and (2) entering into new leases of $1.2 million. These changes were partially offset by lease terminations of $1.2 million. The decrease in franchise rental income during the first nine months of 2026 was primarily due to (1) the impact of assigning certain existing leases to franchisees of $4.3 million, (2) terminating certain existing leases of $1.5 million and (3) amending certain existing leases of $1.4 million. During the first nine months of 2026, these changes were partially offset by entering into new leases of $2.4 million.
Previous wording
The increase in advertising funds revenue during the second quarter and the first six months of 2026 was primarily due to (1) local and regional advertising funds being reallocated to U.S. national advertising of approximately $16.0 million and $30.0 million, respectively, and (2) non-recurring incentives earned from a vendor during the second quarter of 2026 of $11.5 million. During the second quarter and the first six months of 2026, these increases were partially offset by a decrease in franchise same-restaurant sales of approximately $9.0 million and $16.0 million, respectively.
Current wording
The increase in advertising funds revenue during the third quarter and the first nine months of 2026 was primarily due to local and regional advertising funds being reallocated to U.S. national advertising of approximately $15.0 million and $45.0 million, respectively, partially offset by a decrease in franchise same-restaurant sales of approximately $8.0 million and $24.0 million, respectively. During the first nine months of 2026, advertising funds revenue also increased due to non-recurring incentives earned from a vendor during the second quarter of 2026 of $11.5 million.
Previous wording
The increase in cost of sales, as a percent of sales, during the second quarter and the first six months of 2026 was primarily due to (1) a decrease in traffic, (2) higher commodity costs and (3) an increase in restaurant labor rates. These changes were partially offset by (1) higher average check and (2) labor efficiencies.
Current wording
The increase in cost of sales, as a percent of sales, during the third quarter and the first nine months of 2026 was primarily due to (1) a decrease in traffic, (2) higher commodity costs and (3) an increase in restaurant labor rates. These changes were partially offset by (1) higher average check and (2) labor efficiencies.
Previous wording
The increase in franchise support and other costs during the second quarter and the first six months of 2026 was primarily due to an increase in the provision for doubtful accounts.
Current wording
The increase in franchise support and other costs during the third quarter and the first nine months of 2026 was primarily due to an increase in the provision for doubtful accounts.
Previous wording
The decrease in franchise rental expense during the second quarter and the first six months of 2026 was primarily due to (1) the impact of assigning certain leases to franchisees, (2) amending certain existing leases and (3) lease terminations.
Current wording
The decrease in franchise rental expense during the third quarter of 2026 was primarily due to (1) the impact of amending certain existing leases and (2) lease terminations. These changes were partially offset by the impact of assigning certain leases to franchisees in 2025. The decrease in franchise rental expense during the first nine months of 2026 was primarily due to (1) the impact of assigning certain leases to franchisees, (2) amending certain existing leases and (3) lease terminations.
Previous wording
On an interim basis, advertising funds expense is recognized in proportion to advertising funds revenue. The increase in advertising funds expense during the second quarter and the first six months of 2026 was primarily due to the same factors as described above for “Advertising Funds Revenue.”
Current wording
On an interim basis, advertising funds expense is recognized in proportion to advertising funds revenue. The increase in advertising funds expense during the third quarter and the first nine months of 2026 was primarily due to the same factors as described above for “Advertising Funds Revenue.”
Previous wording
The increase in depreciation and amortization during the second quarter and the first six months of 2026 was primarily due to (1) depreciation and amortization on restaurant assets acquired from a franchisee during the third quarter of 2025 and (2) asset additions for new and remodeled restaurants.
Current wording
The increase in depreciation and amortization during the third quarter and the first nine months of 2026 was primarily due to (1) asset additions for new and remodeled restaurants and (2) depreciation and amortization on restaurant assets acquired from a franchisee during the third quarter of 2025.
Previous wording
The increase in amortization of cloud computing arrangements during the second quarter and the first six months of 2026 was primarily due to amortization of assets associated with the Company’s digital investments.
Current wording
The increase in amortization of cloud computing arrangements during the first nine months of 2026 was primarily due to amortization of assets associated with the Company’s digital investments.
Previous wording
System optimization gains, net during the second quarter and the first six months of 2026 were primarily comprised of gains on the sale of surplus and other properties. See Note 10 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further discussion.
Current wording
Portfolio and system optimization gains, net during the third quarter and the first nine months of 2026 were primarily comprised of gains on the sale of surplus and other properties. See Note 12 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information.
Previous wording
During the first six months of 2026 and 2025, the Company recognized costs under the Organizational Redesign Plan of $(0.2) million and $(0.8) million, respectively, which primarily included reversals of severance accruals resulting from changes in estimates. See Note 11 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information on the Organizational Redesign Plan.
Current wording
During the first nine months of 2026 and 2025, the Company recognized costs under the Organizational Redesign Plan of $(0.2) million and $(0.8) million, respectively, which primarily included reversals of severance accruals resulting from changes in estimates. See Note 13 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information regarding “Reorganization and Realignment Costs.”
Previous wording
The increase in impairment of long-lived assets during the second quarter was primarily due to higher impairment charges resulting from the deterioration in operating performance of certain Company-operated restaurants. The increase in impairment of long-lived assets during the first six months of 2026 was primarily due to (1) losses from the remeasurement to fair value of assets leased and/or subleased to franchisees in connection with the closure of franchise-operated restaurants and (2) higher impairment charges resulting from the deterioration in operating performance of certain Company-operated restaurants.
Current wording
The decrease in impairment of long-lived assets during the third quarter of 2026 was primarily due to lower impairment charges resulting from the deterioration in operating performance of certain Company-operated restaurants. The increase in impairment of long-lived assets during the first nine months of 2026 was primarily due to losses from the remeasurement to fair value of assets leased and/or subleased to franchisees in connection with the closure of franchise-operated restaurants.
Previous wording
The increase in other operating income, net during the second quarter of 2026 was primarily due to an increase in lease buyout activity. The increase in other operating income, net during the first six months of 2026 was primarily due to (1) an increase in lease buyout activity and (2) gains on new and modified sales-type leases. During the first six months of 2026, these increases were partially offset by the settlement of a claim during the prior year.
Current wording
The decrease in other operating income, net during the third quarter of 2026 was primarily due to a decrease in lease buyout activity. The decrease in other operating income, net during the first nine months of 2026 was primarily due to the settlement of a claim during the prior year, partially offset by gains on new and modified sales-type leases.
Previous wording
The increase in interest expense, net during the second quarter and the first six months of 2026 was primarily due to the impact of completing the refinancing of a portion of the Company’s securitized financing facility in the fourth quarter of 2025.
Current wording
The increase in interest expense, net during the third quarter and the first nine months of 2026 was primarily due to the impact of completing the refinancing of a portion of the Company’s securitized financing facility in the fourth quarter of 2025.
Previous wording
During the first six months of 2025, the Company recorded a loss of $1.7 million due to impairment charges for the difference between the estimated fair value and the carrying value of an investment in equity securities.
Current wording
During the first nine months of 2025, the Company recorded a loss of $1.7 million due to impairment charges for the difference between the estimated fair value and the carrying value of an investment in equity securities.
Previous wording
The increase in other income, net during the second quarter of 2026 was primarily due to an increase in interest income, reflecting (1) interest earned on accounts receivable from a franchisee and (2) interest income related to a tax refund. The decrease in other income, net during the first six months of 2026 was primarily due to a decrease in interest income, reflecting (1) lower interest rates and (2) lower balances of cash equivalents. These decreases were partially offset by interest earned on accounts receivable from a franchisee.
Current wording
The increase in other income, net during the third quarter of 2026 was primarily due to an increase in interest income, reflecting higher balances of cash equivalents. The decrease in other income, net during the first nine months of 2026 was primarily due to a decrease in interest income, reflecting lower interest rates.
Previous wording
The increase in the effective tax rate for the second quarter and the first six months of 2026 was primarily due to the tax effects of our foreign operations and lower income before income taxes.
Current wording
The increase in the effective tax rate for the third quarter of 2026 was primarily due to lower income before income taxes and the tax effects of share-based compensation. These impacts were partially offset by a decrease in state income taxes. The increase in the effective tax rate for the first nine months of 2026 was primarily due to lower income before income taxes, the tax effects of share-based compensation and the tax effects of our foreign operations.
Previous wording
The increase in Wendy’s U.S. revenues during the second quarter and the first six months of 2026 was primarily due to (1) higher advertising fund revenue, (2) the impact of the Company’s acquisition of 35 franchise-operated restaurants in the third quarter of 2025, and (3) an increase in franchise fees. These impacts were partially offset by a decrease in same-restaurant sales. Same-restaurant sales decreased during the second quarter and the first six months of 2026 primarily due to a decrease in traffic, partially offset by higher average check.
Current wording
The decrease in Wendy’s U.S. revenues during the third quarter of 2026 was primarily due to a decrease in same-restaurant sales, partially offset by the impact of the Company’s acquisition of 35 franchise-operated restaurants in the third quarter of 2025. The increase in Wendy’s U.S. revenues during the first nine months of 2026 was primarily due to (1) the impact of the Company’s acquisition of 35 franchise-operated restaurants in the third quarter of 2025, (2) higher advertising fund revenue and (3) an increase in franchise fees. These impacts were partially offset by a decrease in same-restaurant sales. Same-restaurant sales decreased during the third quarter and the first nine months of 2026 primarily due to a decrease in traffic, partially offset by higher average check.
Previous wording
The decrease in Wendy’s U.S. segment profit during the second quarter and the first six months of 2026 was primarily due to (1) higher advertising fund expenses, (2) higher cost of sales, as a percent of sales, for Company-operated restaurants, driven by the same factors as described above for “Cost of Sales, as a Percent of Sales,” and (3) higher franchise support and other costs. These changes were partially offset by higher revenues.
Current wording
The decrease in Wendy’s U.S. segment profit during the third quarter of 2026 was primarily due to (1) higher franchise support and other costs, (2) lower revenues, (3) higher advertising fund expenses and (4) higher cost of sales, as a percent of sales, for Company-operated restaurants, driven by the same factors as described above for “Cost of Sales, as a Percent of Sales.” The decrease in Wendy’s U.S. segment profit during the first nine months of 2026 was primarily due to (1) higher advertising fund expenses, (2) higher franchise support costs and (3) higher cost of sales, as a percent of sales, for Company-operated restaurants, driven by the same factors as described above for “Cost of Sales, as a Percent of Sales.” These changes were partially offset by higher revenues.
Previous wording
The increase in Wendy’s International revenues during the second quarter and the first six months of 2026 was primarily due to (1) an increase in franchise fees and (2) net new restaurant development. These impacts were partially offset by a decrease in same-restaurant sales. Same-restaurant sales decreased during the second quarter and the first six months of 2026 primarily due to a decrease in traffic, partially offset by higher average check.
Current wording
The decrease in Wendy’s International revenues during the third quarter of 2026 was primarily due to a decrease in same-restaurant sales. The increase in Wendy’s International revenues during the first nine months of 2026 was primarily due to (1) an increase in franchise fees and (2) net new restaurant development. These impacts were partially offset by a decrease in same-restaurant sales. Same-restaurant sales decreased during the third quarter and the first nine months of 2026 primarily due to a decrease in traffic, partially offset by higher average check.
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