10-Q · May 8, 2026
Wendy's reported a solid Q1 2026 with revenues of $540.6 million, exceeding estimates by 4.1%. They achieved an EPS of $0.12, up from $0.19 in the prior year, despite a decrease in operating profit and significant…
Earnings analysis · 10-Q
WEN earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Wendy’s reported $570.6 million of revenue and $0.18 of diluted EPS for Q2 2026. Revenue improved year over year and beat the supplied estimate, but EPS declined 37.9% from $0.29, while gross margin remained at 45.1%…
Read full summary
Wendy’s reported $570.6 million of revenue and $0.18 of diluted EPS for Q2 2026. Revenue improved year over year and beat the supplied estimate, but EPS declined 37.9% from $0.29, while gross margin remained at 45.1% and free cash flow was $39 million. The filing excerpt provides no segment, balance-sheet, operating-cash-flow, capex, or quantitative guidance detail; it also reports no material risk-factor changes as of June 28, 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.18
What stood out
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Revenue improved year over year
Revenue was $570.6 million, up approximately 1.7% from $561 million in Q2 2025 and up approximately 5.5% from $541 million in Q1 2026. The company also exceeded the supplied consensus estimate of $559.4 million by approximately 2.0%.
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EPS beat estimates but fell sharply
Diluted EPS was $0.18 versus $0.29 in Q2 2025, a decline of $0.11 or approximately 37.9%, but exceeded the supplied $0.16 estimate by $0.02.
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Gross margin remains pressured
Gross margin was 45.1%, versus 64.0% in the immediately prior quarter and 45.1% in Q2 2025. The sequential decline was 18.9 percentage points, although the year-over-year comparison was flat.
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Operating margin recovered sequentially
Operating margin was 18.5%, up from 11.7% in Q1 2026 by 6.8 percentage points and up from 16.8% in Q3 2025 by 1.7 percentage points. The supplied history does not provide a comparable Q2 2025 operating-margin deterioration despite the EPS decline.
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Free cash flow was stable year over year
Free cash flow was $39 million, down from $48 million in Q1 2026 by $9 million, and flat with the supplied Q2 2025 level of $39 million. The filing excerpt does not disclose operating cash flow or capital expenditures.
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No material control deficiencies reported
Disclosure controls were assessed as effective at a reasonable assurance level as of June 28, 2026, and the company reported no changes in internal control that materially affected, or were reasonably likely to materially affect, reporting controls during Q2 2026.
What to watch
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No material risk-factor updates
The filing states that there were no material changes from the Form 10-K risk factors as of June 28, 2026. Accordingly, no new or escalated risk-factor disclosure was identified versus the prior annual filing.
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Debt and cash-flow obligations
Wendy’s continues to identify debt and securitized-financing risks, including covenant compliance and the ability to generate sufficient cash flow for debt service. The excerpt does not disclose a current debt balance or covenant headroom, limiting quantitative assessment.
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Capital allocation flexibility
The company disclosed that 3,636 shares were reacquired during Q2 2026 at an average price of $7.21, while $35,000,024 remained available under the repurchase plans. Capital allocation remains a risk because repurchases and dividends compete with liquidity and turnaround investment.
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Litigation exposure is not quantifiable
The filing says the aggregate possible range of loss for existing litigation and claims could not be estimated, and future developments could materially affect financial condition, results of operations, or cash flows in a particular reporting period.
Management's outlook
The 10-Q contains no quantitative revenue or EPS outlook. It provides general forward-looking language but does not state numeric guidance; recent guidance commentary is outside the filing.
Earlier filings 4
10-K · February 23, 2026
Wendy’s announced Project Fresh in 2025 to drive U.S. AUV growth and reprioritize capital allocation while the system remained largely franchised (7,397 restaurants at year-end). Q4 2025 results showed revenue of…
10-Q · November 7, 2025
Wendy’s reported Q3 revenue of $549,516,000 (down $17,223,000 or ~3.0% YoY from $566,739,000) and diluted EPS of $0.23 (down $0.02 from $0.25 a year ago). Operating profit was $92,049,000 (down $2,626,000 or ~2.8% YoY).…
10-Q · August 8, 2025
Wendy’s reported Q2 revenue of $560,929,000 (down from $570,727,000 a year ago) and delivered diluted EPS of $0.29 (up from $0.27). Operating profit improved to $104,260,000, supported by higher operating margin, while…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.