Wendy’s (WEN) Stock Drops as Dividend Gets Slashed and Outlook Scrapped
TLDR
- Wendy’s cut its quarterly dividend from 14 cents to 7 cents per share
- Full-year 2026 guidance was withdrawn due to falling traffic and weaker franchisee profits
- U.S. same-restaurant sales dropped 7% in Q2, worse than the 4.7% Wall Street expected
- Adjusted EPS of $0.18 beat estimates; revenue of $570.6M topped the $557.1M forecast
- Activist investor Nelson Peltz, holding over 24% of the company, is in ongoing talks about “strategic transactions”
Wendy’s stock slid 2.6% in premarket trading Friday after the company cut its dividend and pulled its full-year guidance, adding to a 7.5% drop the day before.
The fast-food chain reduced its quarterly dividend to $0.07 per share, down from $0.14. The annualized payout is now $0.28. Wendy’s said the cut frees up capital for its turnaround plan.
CEO Bob Wright said the company has identified five areas to fix, including rebuilding menus and improving marketing. “Today we are clearly not performing at our potential,” Wright said.
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