Wendy's beat earnings estimates but missed revenue forecasts, lowered guidance, and cut locations, causing stock drop despite strong ROE and dividend.

Wendy’s reported mixed Q4 results, with earnings of $0.16 per share beating estimates by $0.02, but revenue of $439.6 million missed forecasts and fell 5.5% year-over-year. The company maintained FY 2026 EPS guidance at $0.56–$0.60, below analysts’ expected $0.99. Despite a strong return on equity and a high dividend yield, the stock dropped amid multiple analyst downgrades, including BMO and TD Cowen cutting price targets, and plans to close 250–300 U.S. locations. Promotions like the Thin Mints Frosty and $1 deals aim to boost traffic, but challenges persist, including declining same-store sales, market share loss, and weak breakfast performance.