Group 1 - The White House has achieved its 21st Supreme Court victory since January, indicating a trend of legal success attributed to lawful policies [2] - The Supreme Court's recent decision paused the reinstatement of a fired FTC commissioner and will reconsider whether lower courts have the authority to reinstate already fired public officials, which could impact the president's firing authority [3][4] - The Trump administration argues that the president has the constitutional authority to manage the economy and that lower courts should not interfere with his decisions, including firings [5][7] Group 2 - The final brief regarding the Federal Reserve case is due this week, while the question of public officials' removal will be briefed in December [6] - The White House legal team is working diligently to ensure that policies are lawful and expects to be vindicated by the Supreme Court [6]

Core Viewpoint - Wendy's Company (NASDAQ:WEN) experienced a decline in early trading after Argus downgraded its rating from Buy to Hold, indicating concerns about the company's current performance and outlook [2]. Company Summary - Analyst Christine Dooley expressed that Wendy's is currently in a challenging situation, suggesting that the company is facing difficulties in its operations and market position [2].

Company Performance - Wendy's has been a poor investment, with shares remaining essentially flat over the past 10 years and declining by 55% over the last five years [1] Investment Strategy - The investment approach focuses on companies with ideal qualitative attributes, purchasing them at attractive prices based on fundamentals, and holding them indefinitely [2] - The strategy involves managing a concentrated portfolio aimed at avoiding underperformers while maximizing exposure to high-potential winners [2]

Core Viewpoint - Wendy's is facing significant challenges including stagnant sales growth, a declining stock price, and negative earnings revisions, which are impacting its outlook negatively [1][4][9] Company Performance - Wendy's has experienced flat to negative comparable sales growth and has struggled to adapt to changing consumer preferences for healthier options and convenience-driven formats [2][5] - Current quarter EPS projections have been cut by 16%, and next quarter estimates are down 17.4%, indicating a loss of confidence in the company's near-term performance [5] - Sales are expected to decline by 3.4% this year, with only a modest rebound of 4.5% projected for 2026, while earnings are anticipated to drop by 12% this year with a 7.9% recovery next year [6] Valuation and Market Sentiment - Despite weak fundamentals, Wendy's stock trades at a forward earnings multiple of 11.1x, its lowest in a decade, but the weak growth profile makes this valuation appear expensive [6][9] - Analysts have been cutting estimates across various timeframes, pushing Wendy's stock into Zacks Rank 5 (Strong Sell) territory [3][5] - The stock has failed to gain momentum even after an earnings beat, and it is trading close to new lows, which could lead to further selling pressure [8][9] Investment Outlook - Without a clear path to sustainable growth, it is suggested that investors may want to avoid Wendy's and focus on stronger operators in the restaurant space [10]

Group 1 - The article provides a market analysis covering several companies in the restaurant industry, including Cracker Barrel Old Country Store, Brinker International Inc, The Wendy's Co, and CAVA Group Inc [1] Group 2 - The analysis highlights the performance and market trends of the mentioned companies, indicating potential investment opportunities and risks within the sector [1]

From McDonald’s to Wendy’s, early fast-food jobs offered these ambitious workers much more than a paycheck. https://t.co/aimto5Dwd5 https://t.co/tqZ7UVCFOh ...

Group 1 - The Wendy's Company (NASDAQ: WEN) has been previously rated as a sell due to weak traffic data and poor growth prospects [1] - The author emphasizes a diverse investment approach, incorporating fundamental, technical, and momentum investing strategies [1] - The article serves as a performance tracker for investment ideas and aims to connect with like-minded investors [1] Group 2 - There are no disclosed positions in any mentioned companies, and no plans to initiate such positions in the near future [2] - The article reflects the author's personal opinions and is not influenced by compensation from any company [2] - Seeking Alpha does not provide investment recommendations and the views expressed may not represent the platform as a whole [3]

Core Insights - The article highlights the extensive experience of Mehmood, founder and director of Moods Investment Research, with over 20 years in the financial sector, particularly in securities analysis and capital markets investment [1] Group 1: Company Profile - Moods Investment Research is based in Ontario, Canada, and focuses on investment research [1] - Mehmood has previously served as vice president at Mashreqbank in Dubai, UAE, indicating a strong background in banking and finance [1] - The company specializes in analyzing securities and managing a sizable portfolio that includes equities and real estate investments [1] Group 2: Educational Background - Mehmood holds a BA (Hons) degree with a double major in Law & Politics from York University, Toronto, Canada, which adds to his analytical capabilities in the investment field [1]

Core Insights - Fast food chains, particularly Wendy's and McDonald's, are experiencing a decline in their breakfast business as consumers cut back on spending [2][3] - Executives from both companies noted that breakfast is the weakest meal period, with consumers opting to eat at home during times of financial uncertainty [2][3] Company Performance - Wendy's interim CEO indicated that increased consumer uncertainty leads to reduced breakfast purchases, as this meal is often the first to be skipped [2] - McDonald's CEO confirmed that breakfast is the weakest daypart, with some customers not visiting for that meal [2] - McDonald's reported a slowdown in U.S. outlet growth to 2.5% in the spring quarter, attributed to continued pressure on lower-income consumers [3] Consumer Behavior - Despite a cautious consumer mood, U.S. households are showing resilience in spending, particularly in essentials and packaged goods [4] - Back-to-school spending has been a standout category, while travel and luxury spending face challenges [4] - A report indicated that nearly one-third of consumers delayed or canceled discretionary purchases in June due to financial pressures [5] Financial Sentiment - The financial security of consumers significantly impacts their spending behavior, with 31% of financially secure consumers maintaining their purchasing frequency despite price increases, compared to only 13% of paycheck-to-paycheck consumers [6]

PART I: FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents The Wendy's Company's unaudited condensed consolidated financial statements for the quarterly period ended June 29, 2025, including Balance Sheets, Statements of Operations, Comprehensive Income, Stockholders' Equity, and Cash Flows, along with detailed notes explaining the basis of presentation and key accounting policies [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 29, 2025, total assets decreased to **$4.89 billion** from **$5.03 billion** at year-end 2024, primarily due to a reduction in cash and cash equivalents, while total liabilities remained relatively stable at **$4.78 billion**, and total stockholders' equity decreased significantly from **$259.4 million** to **$112.9 million**, driven by treasury stock repurchases Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 29, 2025 | December 29, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$4,894,148** | **$5,034,843** | | Cash and cash equivalents | $281,226 | $450,512 | | **Total Liabilities** | **$4,781,260** | **$4,775,491** | | Long-term debt | $2,650,907 | $2,662,130 | | **Total Stockholders' Equity** | **$112,888** | **$259,352** | [Condensed Consolidated Statements of Operations](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) For the second quarter of 2025, total revenues slightly decreased to **$560.9 million** compared to **$570.7 million** in Q2 2024, yet operating profit increased to **$104.3 million** from **$99.5 million**, and net income was stable at **$55.1 million**, with diluted EPS rising to **$0.29** from **$0.27** year-over-year Q2 and H1 2025 vs 2024 Performance (in thousands, except EPS) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $560,929 | $570,727 | $1,084,401 | $1,105,480 | | Operating Profit | $104,260 | $99,507 | $187,386 | $180,663 | | Net Income | $55,110 | $54,643 | $94,342 | $96,636 | | Diluted EPS | $0.29 | $0.27 | $0.48 | $0.47 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 29, 2025, net cash from operating activities was stable at **$146.0 million**, cash used in investing activities increased to **$52.3 million**, and cash used in financing activities significantly increased to **$272.7 million**, primarily due to a large increase in common stock repurchases (**$186.5 million** in 2025 vs. **$34.2 million** in 2024), resulting in a net decrease in cash of **$173.5 million** Six Months Ended Cash Flow Summary (in thousands) | Cash Flow Activity | June 29, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $146,008 | $145,463 | | Net cash used in investing activities | ($52,264) | ($43,958) | | Net cash used in financing activities | ($272,687) | ($162,382) | | Net decrease in cash | ($173,506) | ($64,175) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed disclosures on key financial statement components, outlining the basis of presentation, disaggregating revenue by segment, detailing lease accounting, long-term debt structure, stockholder equity activities including dividends and repurchases, and providing segment-level financial performance - The company's business is managed and reported in three segments: Wendy's U.S., Wendy's International, and Global Real Estate & Development[25](index=25&type=chunk) Total Revenues by Segment - Q2 2025 (in thousands) | Segment | Q2 2025 Revenue | | :--- | :--- | | Wendy's U.S. | $461,142 | | Wendy's International | $38,850 | | Global Real Estate & Development | $60,937 | | **Total** | **$560,929** | - During Q1 and Q2 2025, the company paid dividends of **$0.25** and **$0.14 per share**, respectively[66](index=66&type=chunk) - In the first six months of 2025, the company repurchased **12,957 thousand shares** for an aggregate price of **$186.0 million** under its January 2023 authorization, leaving **$49.0 million** available[67](index=67&type=chunk) [Management's Discussion and Analysis (MD&A)](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance for the second quarter and first half of 2025, covering a slight decrease in global systemwide sales and revenues, segment performance, revenue and expense fluctuations, and an overview of liquidity, capital resources, and cash flows [Executive Overview and Key Business Measures](index=28&type=section&id=Executive%20Overview%20and%20Key%20Business%20Measures) As of June 29, 2025, the Wendy's system comprised **7,334 restaurants**, with approximately **5%** being company-operated, and management tracks performance using key metrics such as Same-Restaurant Sales, Company-Operated Restaurant Margin, and Systemwide Sales - As of June 29, 2025, the Wendy's system had **7,334 restaurants**, with **5,967** in the U.S. and **1,367** internationally[119](index=119&type=chunk) - Key business measures used by management include **Same-Restaurant Sales**, **Company-Operated Restaurant Margin**, and **Systemwide Sales**[123](index=123&type=chunk)[124](index=124&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) In Q2 2025, revenues decreased **1.7%** to **$560.9 million**, and global same-restaurant sales fell **2.9%**, driven by a **3.6%** decline in the U.S. despite a **1.8%** increase internationally, primarily due to lower traffic partially offset by a higher average check Same-Restaurant Sales Growth - Q2 2025 vs Q2 2024 | Region/Type | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | U.S. Systemwide | (3.6)% | 0.6% | | International | 1.8% | 2.5% | | **Global Systemwide** | **(2.9)%** | **0.8%** | - The decrease in sales for company-operated restaurants was primarily due to a decrease in traffic, partially offset by a higher average check[140](index=140&type=chunk) - Cost of sales as a percentage of sales increased in Q2 2025, driven by higher commodity costs and restaurant labor rates, which was partially offset by labor efficiencies and higher average check[146](index=146&type=chunk) [Segment Information](index=37&type=section&id=Segment%20Information) In Q2 2025, Wendy's U.S. segment revenues declined to **$461.1 million** but profit slightly increased to **$137.2 million**, while Wendy's International segment saw revenue growth to **$38.9 million** and profit increase to **$13.2 million**, and Global Real Estate & Development segment's revenue and profit both slightly decreased Segment Profit (Adjusted EBITDA) - Q2 2025 vs Q2 2024 (in millions) | Segment | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Wendy's U.S. | $137.2 | $136.7 | | Wendy's International | $13.2 | $10.7 | | Global Real Estate & Development | $27.3 | $28.2 | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 29, 2025, the company held **$330.1 million** in cash, cash equivalents, and restricted cash, with management believing current cash and operating cash flows are sufficient for the next 12 months, despite significant cash used in financing activities due to **$186.0 million** in stock repurchases and **$76.2 million** in dividends - The company repurchased **13.0 million shares** for **$186.0 million** in the first six months of 2025[170](index=170&type=chunk) - Dividends paid in the first half of 2025 totaled **$76.2 million**[171](index=171&type=chunk) - The significant increase in cash used in financing activities was primarily due to a **$152.3 million** increase in common stock repurchases compared to the prior year[177](index=177&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports that as of June 29, 2025, there have been no material changes to the market risk information previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 29, 2024 - There were no material changes from the market risk information contained in the Company's Form 10-K for the fiscal year ended December 29, 2024[180](index=180&type=chunk) [Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Interim CEO and CFO, concluded the company's disclosure controls and procedures were effective as of June 29, 2025, with no material changes in internal control over financial reporting during the second quarter of 2025 - Based on evaluations, the Interim CEO and CFO concluded that as of June 29, 2025, the company's disclosure controls and procedures were effective at a reasonable assurance level[181](index=181&type=chunk) - No changes in internal control over financial reporting occurred during the second quarter of 2025 that materially affected, or are reasonably likely to materially affect, its internal control[182](index=182&type=chunk) PART II: OTHER INFORMATION [Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various litigation and claims incidental to its business, for which management believes it has established adequate accruals, though an aggregate possible range of loss cannot be estimated due to the preliminary stage of many proceedings - The Company believes it has adequate accruals for all of its legal and environmental matters but cannot estimate the aggregate possible range of loss for existing litigation and claims[186](index=186&type=chunk) [Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes from the risk factors that were previously disclosed in its Annual Report on Form 10-K - There have been no material changes from the risk factors previously disclosed in the Company's Form 10-K[187](index=187&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=43&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's common stock repurchases during the second quarter of 2025, with **4.78 million shares** repurchased at an average price of **$12.97 per share**, leaving **$49.0 million** available under the existing plan Share Repurchases in Q2 2025 | Period | Total Shares Purchased | Average Price Paid per Share | Value Remaining Under Plan | | :--- | :--- | :--- | :--- | | **Total Q2 2025** | **4,777,483** | **$12.97** | **$49,037,650** | - The Board of Directors authorized a **$500.0 million** repurchase program in January 2023, effective through February 28, 2027[192](index=192&type=chunk) [Exhibits](index=44&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including a marketing consulting agreement and certifications from the Interim CEO and CFO as required by the Sarbanes-Oxley Act - Exhibits filed include a Marketing Consulting Agreement, CEO/CFO certifications pursuant to Sarbanes-Oxley Sections 302 and 906, and financial data in Inline XBRL format[193](index=193&type=chunk)