Wendy's Rejects Buyout Offer, Insists Its Best Days Are Still Ahead

Wendy’s Company (NASDAQ:WEN) stock traded higher Thursday after the fast-food chain reported better-than-expected third-quarter 2026 results, despite continued weakness in its U.S. business.

Wendy’s also rejected an unsolicited $1.4 billion takeover proposal from an investor group led by Trian Partners. The board said the offer undervalued the company and its turnaround potential.

Despite ongoing challenges, CEO Bob Wright expressed confidence in Wendy’s turnaround strategy after the company rejected the unsolicited buyout offer.

“I’m confident our best days are ahead of us,” Wright said during Thursday’s earnings call, pointing to early progress under the company’s Dave’s Way strategy.

Wendy’s Beats Earnings and Revenue Estimates

Revenue fell 0.5% year over year to $546.99 million, beating Wall Street’s estimate of $530.52 million.

Adjusted earnings of 13 cents per share topped the 9-cent estimate but declined from 24 cents a year earlier.

Global systemwide sales fell 5.9% to $3.3 billion. U.S. sales dropped 7.6%, while international sales grew 3.5%.

U.S. same-restaurant sales declined 5.7%, while international same-restaurant sales fell 2.2%.

Wendy’s ended the quarter with 7,194 restaurants worldwide.

Wendy’s Profit and Margins Decline

U.S. company-operated restaurant margin narrowed 140 basis points to 11.7%.

Higher food and labor costs, along with weaker customer traffic, pressured margins.

Operating profit fell 39% to $55.8 million. Net income dropped 65.9% to $15.1 million.

Adjusted EBITDA declined 17.8% to $113.4 million.

Wendy’s held $300.8 million in cash and cash equivalents. Long-term debt totaled $2.73 billion, excluding $29.8 million in current debt.

The company declared a quarterly dividend of 7 cents per share, payable Dec. 15 to shareholders of record Dec. 1.

Dave’s Way Turnaround Targets Growth

Wendy’s launched Dave’s Way, a multiyear strategy focused on rebuilding customer traffic, improving profitability and expanding digital sales.

Wright said making breakfast optional at U.S. restaurants could generate up to $200 million in restaurant-level EBITDA across the system.

The company also signed a letter of intent to acquire up to 163 restaurants from Meritage Hospitality Group and its lenders, subject to approvals and final agreements.

Wendy’s plans to roll out a fully refreshed menu experience in 2027, with improved ingredients and new offerings.

WEN Price Action: Wendy’s shares were up 1.05% at $7.735 at the time of publication Thursday, according to Benzinga Pro data.

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