Wendy’s Withdraws 2026 Guidance, Slashes Dividend – CEO Bob Wright Says ‘Clearly Not Performing At Our Potential’

Wright said that the company has already begun executing a turnaround focused on priorities that include improving menu quality and value, and strengthening marketing.

• Wendy’s reduced annualized dividend to $0.28 per share and declared a quarterly cash dividend of $0.07 per share.
• Earnings of $0.18 per share topped analysts’ expectations of $0.16 per share.
• U.S. same-restaurant sales fell 7% during the quarter, reflecting weaker customer traffic.

Wendy’s (WEN) was in the spotlight on Friday after the company withdrew its full-year 2026 financial outlook and cut its dividend as its new leadership team outlined plans to revive the struggling fast-food chain.

Wendy’s said it is reassessing its business opportunities and capital allocation as it develops a comprehensive turnaround strategy. The company reduced its annualized dividend to $0.28 per share and declared a quarterly cash dividend of $0.07 per share. It had issued a dividend of $0.14 in the previous quarter.

In the first quarter, Wendy’s forecast full-year 2026 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $460 million to $480 million, and adjusted earnings of $0.56 to $0.60 per share.

WEN shares were down 0.3% at the time of writing.

Same-Restaurant Sales Fall

Wendy’s reported revenue of $571 million, which was up 1.7% annually, but its adjusted revenue of $443.15 million came in below Wall Street estimates of $557.73 million, according to Fiscal.ai data. Earnings of $0.18 per share topped analysts’ expectations of $0.16 per share.

U.S. same-restaurant sales fell 7% during the quarter, reflecting weaker customer traffic. “Our traffic, our value proposition and franchisee economics are not meeting our expectations,” said CEO Bob Wright, adding that the company is “clearly not performing” to its potential.

Turnaround Efforts Underway

Wendy’s shares have fallen more than 25% over the past year, touching nearly 20-year lows in June before staging a recovery. However, investor sentiment improved after the company appointed former Potbelly executives Bob Wright as CEO and Steve Cirulis as CFO to lead the turnaround.

Wright said that the company has already begun executing a turnaround focused on five priorities: improving menu quality and value, strengthening marketing, enhancing operations, expanding its digital business, and using restaurants as a platform for long-term growth.

Despite that, Wall Street remains cautious. According to data compiled by Koyfin, the stock has a 12-month average price target of $7.75 – 8% over current levels. Fifteen of the 24 analysts covering Wendy’s rate it ‘Hold’, with four ‘Buy’ ratings and five ‘Sell’ ratings.

Retail’s Take On WEN

Retail sentiment for WEN on Stocktwits remained ‘bullish’ over the past 24 hours, amid ‘high’ message volumes.

One user said this is “exactly what you’d want a new CEO to do,” adding that withdrawing guidance helps avoid wrong expectations.

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The stock has declined more than 8% so far in 2026.

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