Wendy’s International Sales Climb 8.6% While U.S. Performance Lags—Operational Initiatives in Focus
International Growth Stands Out Amid Overall Sales Dip
Wendy’s reported third-quarter 2025 results that underscore a contrasting dynamic: robust growth outside the U.S. offset by domestic softness. Global systemwide sales fell by 2.6% to $3.54 billion, but international sales defied the trend, climbing 8.6% for the quarter and 8.7% year-to-date. Meanwhile, the U.S. segment posted a 4.4% decline in quarterly systemwide sales growth, pulling global results into negative territory.
The international strength was further highlighted by 31 net new restaurant openings in non-U.S. markets for the quarter, accounting for most of the company’s net additions. Wendy’s has opened a total of 172 new restaurants year-to-date, with more than 44% coming from outside the United States.
| Metric | Q3 2025 U.S. | Q3 2025 Intl | Q3 2025 Global |
|---|---|---|---|
| Systemwide Sales Growth | -4.40% | 8.60% | -2.60% |
| Same-Restaurant Sales Growth | -4.70% | 3.00% | -3.70% |
| Net Restaurant Openings | 12 | 17 | 29 |
Operational Pressures Impact U.S. Margins and Profits
Domestically, Wendy’s continues to face challenges, including traffic declines, commodity inflation, and rising labor costs. These factors reduced U.S. company-operated restaurant margin from 15.6% to 13.1% year over year. Total revenues fell by 3% compared to the third quarter of 2024, mainly due to reduced advertising funds and lower franchise royalty revenues.
Still, management points to several bright spots: comparable sales at company-operated restaurants outperformed the broader system by 4%, and new menu initiatives, such as the chicken tenders launch, found success. CEO Ken Cook also cited Project Fresh, Wendy’s comprehensive turnaround effort focused on brand revitalization, operational excellence, and system optimization, as a key pillar for driving future U.S. growth.
| Q3 2024 | Q3 2025 | Change (%) | |
|---|---|---|---|
| Total Revenues ($M) | 566.7 | 549.5 | -3.00% |
| U.S. Restaurant Margin | 15.6% | 13.1% | -2.50% |
| Adjusted EBITDA ($M) | 135.2 | 138.0 | +2.10% |
| Net Income ($M) | 50.2 | 44.3 | -11.80% |
| Adjusted EPS | 0.25 | 0.24 | -4.00% |
Adjusted EBITDA Growth and Shareholder Returns Signal Resilience
Despite overall sales and profit declines, Wendy’s managed to grow adjusted EBITDA by 2.1% for the quarter, buoyed by operational cost control and a decrease in funding for incremental advertising. The company also increased its free cash flow outlook to $195–210 million, up $35 million from previous expectations. Shareholder returns remained robust, with $40.7 million returned through dividends and share repurchases during the quarter.
Key figures from the company’s 2025 outlook are as follows:
| Metric | 2025 Outlook |
|---|---|
| Adjusted EBITDA | $505–$525 million |
| Adjusted Earnings Per Share | $0.82–$0.89 |
| Global Systemwide Sales Growth | -5.00% to -3.00% |
| Free Cash Flow | $195–$210 million |
| Global Net New Unit Growth | 2–3% |
What’s Next? U.S. Turnaround Will Be Key to Upside
The quarter’s results show Wendy’s ability to leverage international momentum and maintain operational discipline in the face of U.S. headwinds. Project Fresh and menu innovation remain at the center of Wendy’s domestic strategy, while international markets offer an avenue for sustained growth. For investors and industry watchers, the focus over the next few quarters will be on how quickly U.S. traffic trends stabilize and whether the company can deliver on its new free cash flow targets amid persistent margin pressure.
Wendy’s will hold a conference call at 8:30 a.m. ET on November 7 to provide additional color and answer analyst questions, with presentation materials available on its investor relations website. As management steers the brand through operational and market challenges, the pace of U.S. recovery—and continued global expansion—will likely drive sentiment in the quarters ahead.
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