Wendy's Cuts Dividend, Withdraws Outlook Amid Turnaround
On Friday, Wendy's revealed it will reduce its quarterly dividend from $0.14 to $0.07 per share, leading to an annual payout of $0.28 per share. This dividend will be distributed on September 15 to shareholders recorded as of September 1. The company has also retracted its financial forecast for 2026 as new leadership assesses its situation, following a 7.0% decrease in U.S. restaurant sales and a 6.5% drop in global sales. Net earnings decreased to $32.6 million, equating to 17 cents per diluted share. President and CEO Bob Wright, who took office in May, has outlined five key areas for improvement. On Friday, Wendy's stock experienced a decline of 7.51%.
Key facts
- Wendy's cut its quarterly dividend from $0.14 to $0.07 per share.
- The company withdrew its full-year 2026 financial outlook.
- Second-quarter comparable U.S. restaurant sales dropped 7.0% year-over-year.
- Global systemwide sales fell 6.5%.
- Net earnings were $32.6 million, or 17 cents per diluted share, versus $55.1 million, or 29 cents per diluted share, a year earlier.
- Adjusted earnings per share were $0.18, beating analyst expectations of $0.16.
- Total revenue rose to $570.6 million from $560.9 million.
- Bob Wright was named permanent president and CEO in May.
- Steve Cirulis was appointed CFO and chief strategy officer in June.
- Wendy's stock fell 7.51% on Friday.
Entities
Institutions
- Wendy's
- Potbelly Corporation
- Associated Press
Sources
- Quartz —