Overview

• US franchise restaurant operator's Q1 sales fell yr/yr due to fewer locations, reduced hours

• Company posted Q1 net loss and negative adjusted EBITDA, impacted by one-time closure charges

• Management expects margin improvement and adjusted EBITDA growth for full year 2026

Outlook

• Company expects 2026 sales of $520 mln to $530 mln

• Company sees 2026 restaurant operating income of $35 mln to $40 mln

• Company targets 2026 adjusted EBITDA growth of 45% to 55%

Result Drivers

• FEWER RESTAURANTS - Q1 sales decline attributed to having about 40 fewer restaurants and reduced morning hours in some locations

• CLOSURE AND RESTRUCTURING COSTS - Q1 operating earnings impacted by $4.5 mln in one-time charges for permanent closures and restructuring

• PORTFOLIO OPTIMIZATION - Co said closures and reduced hours are part of a strategic initiative with Wendy’s 'Project Fresh' to improve future profitability

Company press release: ID:nGNX6nR1vN

Key Details

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