The American fast food restaurant channel The Wendy’s Company declared a turnover of $ 523.5 million in the first quarter (T1) of 2025, a drop of 2.1% compared to $ 534.8 million in the same previous quarter.
The drop in total income is due to the decline in sales in the company operated by the company, a reduction in advertising funds and a decrease in franchise fees, somewhat balanced by higher franchise costs.
Adjusted income for the first quarter of 2025 also had a slight 1.6% drop to $ 432.1 million, compared to $ 429.8 million in the same previous period.
The quarter’s net profit fell 6.7% to $ 39.2 million, compared to $ 42 million, while operating profit decreased 2.3% to $ 83.1 million, compared to $ 81.2 million.
The company said that net profit has been affected by a drop in investment income and an increase in interest in interest, although an increase in operating profit has made it possible to compensate.
Wendy’s adjusted EBITDA experienced 2.6%of $ 124.5 million, compared to $ 127.8 million in the first quarter of 2024.
The adjusted EBITDA has been assigned by higher general and administrative expenses, lower franchise fees and reduced margin in American restaurants operated by the company.
Global sales on the company’s system level fell 1.1% to $ 3.4 billion, mainly due to the drop in sales of the same catering in the American segment.
This was partially offset by the positive impact of new restaurant openings and sales growth of the same restoration internationally.
Despite this, Wendy added 68 new net restaurants and remains on the right track to achieve annual unit growth of 2 to 3%. Digital sales have reached a record, representing 20.3% of the world sale mix.
In addition, Wendy returned $ 173.5 million to shareholders through dividends and share buybacks.
During the first quarter of 2025, Wendy bought 8.2 million shares for $ 124.1 million. As of April 25, the company bought 12 million shares for $ 175 million.
About 60 million dollars remain available for share buybacks under the current authorization, which expires in February 2027.
Wendy’s reaffirms its 2025 prospects, expecting world net unit growth of 2 to 3% and capital expenses ranging from $ 100 million to $ 110 million.
Wendy president and chief executive officer Kirk Tanner said: “We continued to deliver our customers during the first quarter. In the United States, we organized both traffic and dollar in a difficult consumption environment, and in our international business, we increased sales on the 8.9%system.
“Above all, we have made progress on the strategic priorities that we presented during our investor day: providing fresh and famous foods, offering an exceptional customer experience and accelerating global growth of the net unit.
