Neither McDonald's nor Burger King: The famous U.S. chain that could close

Wendy's didn't start the year as desired. The well-known fast-food chain reported a 2.1% decrease in its sales during the first quarter of 2025 compared to the same period the previous year. The final figure was 523.47 million euros, slightly below the 525.41 million projected by analysts.

A quarter that leaves doubts for Wendy's in the United States

Despite the unfavorable context, the adjusted earnings per share (EPS) kept stable at 0.20 euros, meeting market forecasts. However, not all news was good: the company cut its EPS estimates for the entire fiscal year 2025, setting a new range between 0.92 and 0.98 euros. The previous forecast ranged between 0.98 and 1.02 euros.

This correction in forecasts reflects a complicated consumer environment, especially in the domestic market of the United States, where Wendy's didn't manage to significantly increase traffic or revenue.

The boost comes from abroad

Despite setbacks in the U.S. market, the company achieved positive performance in its international division. Kirk Tanner, CEO of Wendy's, wanted to highlight this part of the report: "We keep meeting our customers during the first quarter." "In the United States, we kept both traffic and dollar share in a challenging consumer environment, and in our international business, we increased sales by 8.9%," he noted.

This growth abroad is one of the few bright spots in the report, which also includes a conservative projection for the rest of the year. Wendy's anticipates that its global sales will move in a range between a 2% decline and zero growth. It also estimates an adjusted EBITDA between 530 and 545 million euros.

Curiously, despite the cautious tone of the report, Wendy's shares rose by 2.91% on the stock market shortly after its publication, standing at 12.92 euros per share. The quarterly results have caused divided opinions among analysts. Some firms adjusted their valuations, although without drastic changes in their recommendations.

Mixed reactions on Wall Street

From Morgan Stanley, John Glass kept an "Underweight" rating and lowered his price target from 14 to 13 euros. Meanwhile, JP Morgan surprised by raising its rating from "Neutral" to "Overweight," although it also cut its target from 17 to 15 euros. Finally, Stephens & Co decided to keep its "Equal-Weight" rating, maintaining the price target at 14 euros.

This contrast shows that, although Wendy's faces challenges, some analysts see room for improvement. Especially if international growth keeps solid and manages to offset the weakness in the U.S. market.