Wendy’s Q2 same-store sales fall short as traffic remains under pressure

Wendy’s Q2 same-store sales fall short as traffic remains under pressure

Mon, August 10, 2026 at 11:04 PM GMT+3 2 min read

• WEN +3.42%
• JEF -0.56%

The Wendy's Company (NASDAQ:WEN)'s traded down more than 5% on Monday after Jefferies highlighted a weaker-than-expected second quarter same-store sales performance and said near-term trends could remain challenged as the company's new leadership team works on a strategic plan.

Wendy's reported US same-store sales declined 7% in the second quarter, missing Jefferies' estimate of a 5.7% decline. Traffic fell 12.5%, with Jefferies pointing to reduced discounting, changes to breakfast hours and execution issues around quality, operations and marketing as factors weighing on performance.

Jefferies wrote that traffic in July was trending at a similar pace to the second quarter, indicating a weaker same-store sales trajectory than the 1.6% decline expected for the period. The firm expects pressure to continue through the fourth quarter as new management evaluates the business and prepares its strategic plan.

The strategic review is expected to focus on quality and value, the brand and marketing message, operating standards, digital initiatives and the company's domestic restaurant footprint, Jefferies wrote.

Against that backdrop, Jefferies lowered its 2026 same-store sales estimate to a 5.2% decline from a 1.6% decline previously and now models 0.8% growth in 2027.

Wendy's also withdrew its full-year guidance as management navigates continued sales and traffic pressure, commodity costs and potential investments to support the turnaround. Jefferies noted that beef inflation is expected to create additional company-operated restaurant margin pressure in the second half of the year, while G&A and franchisee support costs are also expected to increase.

Second quarter EBITDA came in at $124 million, slightly above Jefferies' $121 million estimate, primarily due to lower-than-expected G&A. That benefit was partly offset by higher franchise support costs.

Jefferies lowered its 2026 adjusted EBITDA estimate to $455 million from $464 million and introduced a 2027 estimate of $450 million. Its EPS estimates were reduced to $0.54 and $0.57 for 2026 and 2027, respectively, from $0.57 and $0.64.

The firm maintained its Hold rating and $7.50 price target, with the target based on 8.5 times its 2027 EBITDA estimate. Jefferies wrote that expectations for Wendy's are already low, while the planned strategic update next quarter could provide an initial catalyst for rebuilding investor confidence.

Jefferies highlighted CEO Ken Wright's previous turnaround experience and history with Wendy's, while noting that the turnaround will take time amid a challenging quick-service restaurant environment.