Wendy’s recorded another quarter of decline as the weak performance in the US continued to pressure the overall numbers.

The chain’s global systemwide sales decreased 6.5 per cent in the second quarter ended June 28, driven by an 8.2 per cent decline in the US, partially offset by a 3.4 per cent growth in international markets.

Same-restaurant sales slid 6.3 per cent, including a 7 per cent drop in the US and a 2.3 percent decrease in international.

The US company-operated restaurant margin shrank by 240 basis points, primarily due to commodity inflation, lower traffic, and labor rate inflation. These were partially offset by an increase in average check and labor efficiencies. 

Net income went down from $55 million a year ago to $32.6 million, attributed to a decrease in operating profit and an increase in interest expense, partially offset by lower income taxes. 

President and CEO Bob Wright said the brand is not performing at its potential, with traffic, value proposition and franchisee economics not meeting expectations.  

“I returned to Wendy’s because I believe we can fix our issues and I am excited to work with our team and our franchisees to drive a strong turnaround,” said Wright, who took the helm in May.

“We have already begun taking action across five areas that we’ve identified to drive the turnaround: Rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency, and restaurants as an engine for growth. 

“We are updating our capital allocation to provide flexibility to support our turnaround across these actions and fund our plan for growth,” he added.

The company has withdrawn its FY26 outlook, as the new leadership is formulating a comprehensive turnaround plan.