Wendy's Q2 Sales Slip as Traffic Falls, CEO Launches Turnaround

Wendy's reported weaker fiscal second‑quarter results, with systemwide sales down 6.5% on a constant‑currency basis. U.S. same‑restaurant sales fell 7% as traffic declined 12.5%, while international same‑store sales slipped 2.3% (systemwide sales rose 3.4% thanks to new openings). Adjusted EBITDA dropped $22.5 million to $124.1 million and adjusted earnings per share were $0.18.

Newly appointed chief executive Robert D. "Bob" Wright, returning after previous stints at the chain, said the company is beginning a turnaround focused on menu quality, value, operations, marketing and digital capabilities. The firm also highlighted a partnership to open up to 1,000 new restaurants in China over the next decade.

Ahead of the earnings release, Wendy's stock rose about 2% after a period of heavy short interest—about 30% of the float—prompting retail traders to anticipate a short‑squeeze. Analysts expect Q2 revenue of roughly $558 million and EPS of $0.16, with mixed recommendations.