Wendy : Q1 2026 Non-GAAP reconciliations
WEN
Published on 05/08/2026 at 07:05 am EDT
2025
2026
Net income
$ 39,232
$ 22,712
Provision for income taxes
15,685
11,453
Income before income taxes
54,917
34,165
Other income, net
(4,986)
(3,350)
Investment loss, net
1,718
-
Interest expense, net
31,477
34,106
Operating profit
83,126
64,921
Plus (less):
Advertising funds revenue
(100,360)
(108,341)
Advertising funds expense (a)
100,216
108,612
Depreciation and amortization (exclusive of amortization of cloud computing
arrangements shown separately below)
36,549
40,575
Amortization of cloud computing arrangements
4,167
4,762
System optimization losses (gains), net
90
(1,625)
Reorganization and realignment costs
(692)
(162)
Impairment of long-lived assets
1,421
2,572
Adjusted EBITDA
$ 124,517
$ 111,314
Revenues
$ 523,472
$ 540,637
Less:
Advertising funds revenue
(100,360)
(108,341)
Adjusted revenues
$ 423,112
$ 432,296
Excludes advertising funds expense of $159 for the three months ended March 30, 2025 related to the Company's funding of incremental advertising. There was no funding of incremental advertising during the three months ended March 29, 2026. In addition, excludes other international-related advertising deficit of $1,153 and $3 for the three months ended March 30, 2025 and March 29, 2026, respectively.
2025
2026
Net income
$ 39,232
$ 22,712
Plus (less):
Advertising funds revenue
(100,360)
(108,341)
Advertising funds expense (a)
100,216
108,612
System optimization losses (gains), net
90
(1,625)
Reorganization and realignment costs
(692)
(162)
Impairment of long-lived assets
1,421
2,572
Total adjustments
675
1,056
Income tax impact on adjustments (b)
(209)
(192)
Total adjustments, net of income taxes
466
864
Adjusted income
$ 39,698
$ 23,576
Diluted earnings per share
$ .19
$ .12
Total adjustments per share, net of income taxes
.01
-
Adjusted earnings per share
$ .20
$ .12
Excludes advertising funds expense of $159 for the three months ended March 30, 2025 related to the Company's funding of incremental advertising. There was no funding of incremental advertising during the three months ended March 29, 2026. In addition, excludes other international-related advertising deficit of $1,153 and $3 for the three months ended March 30, 2025 and March 29, 2026, respectively.
Adjustments relate to the tax effect of non-GAAP adjustments, which were determined based on the nature of the underlying non-GAAP adjustments and their relevant jurisdictional tax rates.
2025
2026
Net cash provided by operating activities Plus (less):
Capital expenditures
$ 85,415
(17,679)
$ 59,389
(11,881)
Franchise development fund
(5,813)
(4,580)
Advertising funds impact (a)
6,093
(6,399)
Free cash flow
$ 68,016
$ 36,529
Represents the net change in the restricted operating assets and liabilities of our advertising funds, which is included in "Changes in operating assets and liabilities and other, net," and the excess of advertising funds expense over advertising funds revenue, which is included in "Net income."
Disclaimer
The Wendy's Company published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 11:04 UTC.