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Wendy’s is facing continued financial pressure after reporting a 5.7 percent decline in U.S. same-store sales for the third quarter of 2026. Its net income fell nearly two-thirds to $15.1 million, compared with $44.3 million in the corresponding quarter of 2025. The results come as the restaurant chain rejects a $1.4 billion acquisition proposal from an investor group led by Trian Fund Management.
The company reported revenue of $547 million and systemwide sales of $3.3 billion, both above market estimates. However, declining sales and increased competition have affected its position in the U.S. burger market, with Burger King overtaking Wendy’s to become the country's second-largest burger chain by system sales.
CEO Bob Wright acknowledged the weak performance while outlining the company's turnaround strategy, called 'Dave’s Way'. The plan focuses on improving customer traffic, menu offerings, restaurant operations and marketing. Wendy’s is also considering bringing back breakfast through an optional franchisee-led approach, which could contribute an estimated $200 million in restaurant-level EBITDA.
International operations provided some growth, with the company adding 30 restaurants during the quarter and recording a 3.5 percent increase in international systemwide sales. Its international restaurant count has crossed 1,400.
Wendy’s is also addressing franchise network challenges. The company has agreed to acquire up to 163 restaurants from Meritage Hospitality Group, a major franchise operator that filed for bankruptcy in September. The remaining locations are expected to transition to other franchisees.
Explaining the rejection of the takeover proposal, Wright said, "We’re confident that we have the right strategy, execution and resources to restore Wendy’s to its full potential and drive meaningful shareholder value."
Restaurant consultant John Gordon believes the recovery will take time, estimating that a complete turnaround could require two to three years. He also expects financially stronger franchisees to take over some struggling restaurant operations.
