The Wendy's Company WEN is scheduled to report second-quarter 2026 results on Aug. 7, before the opening bell. In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate by 20%.
WEN’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 17.6%.
WEN’s Q2 Estimates
The Zacks Consensus Estimate for earnings is pegged at 16 cents per share, indicating a 44.8% decline from a year ago.
The consensus mark for revenues is pinned at $564.6 million, implying a 0.7% increase from the year-ago quarter.
Factors to Note Ahead of WEN’s Q2 Results
Wendy's second-quarter 2026 revenues are likely to have benefited from the continued rollout of its Project Fresh turnaround strategy. The company strengthened its value proposition through the Biggie Deals platform, upgraded the core hamburgers with new buns and improved condiments, and introduced an enhanced spicy chicken sandwich. These menu improvements, along with a stronger promotional calendar featuring the Minions & Monsters collaboration and the planned return of the Pretzel Bacon Pub Cheeseburger, are expected to have supported customer traffic and average spending.
The top line is also likely to have been aided by growth in digital sales and continued international expansion. AI-powered recommendations in the mobile app, improved digital capabilities and better restaurant execution are expected to have enhanced customer engagement. Expansion in markets like the Philippines and Mexico, coupled with the new China development agreement, is also expected to have provided support to systemwide sales growth.
However, revenues are likely to have been pressured by continued weakness in U.S. traffic, particularly among lower-income consumers, soft breakfast demand and the impact of restaurant footprint and operating-hour optimization. Management also projected a mid-single-digit decline in global systemwide sales for the second quarter before expecting a recovery in the back half of the year.
Wendy's second-quarter 2026 bottom line is likely to have been pressured by persistent commodity inflation, particularly elevated beef costs, along with labor inflation. The company is also likely to have incurred higher investments in product quality, brand revitalization, expanded field support teams and digital capabilities under its Project Fresh strategy. Additionally, lower franchise royalty revenues and the financial impact of restaurant system optimization initiatives are anticipated to have weighed on profitability, although these pressures are likely to have been partly offset by labor efficiencies and a higher average check.
What Does the Zacks Model Unveil for WEN?
Our proven model doesn’t predict an earnings beat for Wendy’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: WEN has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: WEN currently has a Zacks Rank #4 (Sell).
The Wendy's Company Price and EPS Surprise
The Wendy's Company price-eps-surprise | The Wendy's Company Quote
Stocks Poised to Beat on Earnings
Here are a few stocks from the Zacks Retail-Wholesale sector, which, according to our model, have the right combination of elements to post an earnings beat this reporting cycle.
CAVA Group, Inc. CAVA currently has an Earnings ESP of +20.30% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the to-be-reported quarter, CAVA’s earnings are expected to increase 6.3% year over year. CAVA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed on one occasion, with the average surprise being 16.6%.
Brinker International, Inc. EAT currently has an Earnings ESP of +0.12% and a Zacks Rank of 3.
In the to-be-reported quarter, Brinker earnings are expected to register a 23.3% year-over-year decline. EAT’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 6.8%.
Sweetgreen, Inc. SG has an Earnings ESP of +11.54% and a Zacks Rank of 2 at present.
In the to-be-reported quarter, Sweetgreen’s earnings are expected to register a 35% year-over-year increase. Sweetgreen’s earnings missed estimates in each of the trailing four quarters, with the average miss being 42.4%.
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The Wendy's Company (WEN): Free Stock Analysis Report
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Sweetgreen, Inc. (SG): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).