Wendy's Revises 2025 Sales, Earnings Outlook Amid Market Challenges

Wendy's has lowered its sales and profit outlook for 2025, now expecting flat or up to a 2% decline in global systemwide sales, compared to its earlier projection of 2-3% growth. The company also cut its adjusted earnings guidance to a range of $0.92 to $0.98 per share, down from $0.98 to $1.02 previously. These adjustments come amid declining U.S. same-restaurant sales, lower revenue from advertising funds and franchise royalties, and a challenging consumer environment. Additionally, Wendy's reduced its quarterly dividend by 44% to $0.14 per share, aligning with its new strategy to distribute 50%-60% of adjusted earnings to shareholders. Despite these cautionary moves, analysts and GF Value estimates suggest a potential upside for Wendy’s stock, with projections indicating the stock could rise between 29% and 82% from current levels. Overall, while the company's near-term outlook is subdued, forward-looking analyst estimates provide a cautiously optimistic perspective for investors.