# Wendy's (WEN) 10-Q SEC filing - Q2 FY2026 - Filed: Aug 7, 2026, 4:15 PM EDT - Fiscal quarter: Q2 FY2026 - Calendar quarter: Q3 2026 - Accession: 0000030697-26-000116 - OpenCapital page: https://www.opencapital.sh/filings/0000030697-26-000116 - Markdown URL: https://www.opencapital.sh/filings/0000030697-26-000116.md - Official SEC filing index: https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/0000030697-26-000116-index.htm ## Filing documents - [10-Q (wen-20260628.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/wen-20260628.htm) - [ROBERT D. WRIGHT EMPLOYMENT LETTER (twc_ex101xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex101xq2-26.htm) - [STEVEN W. CIRULIS EMPLOYMENT LETTER (twc_ex102xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex102xq2-26.htm) - [NONQUALIFIED STOCK OPTION AWARD AGREEMENT (twc_ex104xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex104xq2-26.htm) - [RESTRICTED STOCK UNIT AWARD AGREEMENT (RATABLE VESTING) (twc_ex105xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex105xq2-26.htm) - [RESTRICTED STOCK UNIT AWARD AGREEMENT (CLIFF VESTING) (twc_ex106xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex106xq2-26.htm) - [CEO CERTIFICATION PURSUANT TO SECTION 302 (twc_ex311xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex311xq2-26.htm) - [CFO CERTIFICATION PURSUANT TO SECTION 302 (twc_ex312xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex312xq2-26.htm) - [CEO AND CFO CERTIFICATION PURSUANT TO SECTION 906 (twc_ex321xq2-26.htm)](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex321xq2-26.htm) --- ## 10-Q SEC source: [wen-20260628.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/wen-20260628.htm) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 28, 2026 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission file number: 1-2207 THE WENDY’S COMPANY (Exact name of registrant as specified in its charter) Delaware 38-0471180 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) One Dave Thomas Blvd. Dublin, Ohio 43017 (Address of principal executive offices) (Zip Code) (614) 764-3100 (Registrant’s telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $.10 par value WEN The Nasdaq Stock Market LLC Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ Smaller reporting company ☐ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒ There were 190,669,930 shares of The Wendy’s Company common stock outstanding as of July 31, 2026. THE WENDY’S COMPANY AND SUBSIDIARIES INDEX TO FORM 10-Q Page [PART I: FINANCIAL INFORMATION](#idb03be0f8f2c48acb565357118e2ea05_10) [Item 1. Financial Statements](#idb03be0f8f2c48acb565357118e2ea05_13) [4](#idb03be0f8f2c48acb565357118e2ea05_13) [Unaudited Condensed Consolidated Balance Sheets as of](#idb03be0f8f2c48acb565357118e2ea05_16)[June 28](#idb03be0f8f2c48acb565357118e2ea05_16)[, 2026](#idb03be0f8f2c48acb565357118e2ea05_16)[and December 28, 2025](#idb03be0f8f2c48acb565357118e2ea05_16) [4](#idb03be0f8f2c48acb565357118e2ea05_16) [Unaudited Condensed Consolidated Statements of Operations for the three](#idb03be0f8f2c48acb565357118e2ea05_19)[#idb03be0f8f2c48acb565357118e2ea05_19](#idb03be0f8f2c48acb565357118e2ea05_19)[and six](#idb03be0f8f2c48acb565357118e2ea05_19)[months ended](#idb03be0f8f2c48acb565357118e2ea05_19)[June 28](#idb03be0f8f2c48acb565357118e2ea05_19)[, 2026 and](#idb03be0f8f2c48acb565357118e2ea05_19)[June](#idb03be0f8f2c48acb565357118e2ea05_19)[#idb03be0f8f2c48acb565357118e2ea05_19](#idb03be0f8f2c48acb565357118e2ea05_19)[29](#idb03be0f8f2c48acb565357118e2ea05_19)[, 2025](#idb03be0f8f2c48acb565357118e2ea05_19) [5](#idb03be0f8f2c48acb565357118e2ea05_19) [Unaudited Condensed Consolidated Statements of Comprehensive Income for the three](#idb03be0f8f2c48acb565357118e2ea05_22)[and six](#idb03be0f8f2c48acb565357118e2ea05_22)[#idb03be0f8f2c48acb565357118e2ea05_22](#idb03be0f8f2c48acb565357118e2ea05_22)[months ended](#idb03be0f8f2c48acb565357118e2ea05_22)[June 28](#idb03be0f8f2c48acb565357118e2ea05_22)[, 2026 and](#idb03be0f8f2c48acb565357118e2ea05_22)[June 29](#idb03be0f8f2c48acb565357118e2ea05_22)[, 2025](#idb03be0f8f2c48acb565357118e2ea05_22) [6](#idb03be0f8f2c48acb565357118e2ea05_22) [Unaudited Condensed Consolidated Statements of Stockholders’ Equity for the three](#idb03be0f8f2c48acb565357118e2ea05_25)[#idb03be0f8f2c48acb565357118e2ea05_25](#idb03be0f8f2c48acb565357118e2ea05_25)[and six](#idb03be0f8f2c48acb565357118e2ea05_25)[months ended](#idb03be0f8f2c48acb565357118e2ea05_25)[June 28](#idb03be0f8f2c48acb565357118e2ea05_25)[, 2026 and](#idb03be0f8f2c48acb565357118e2ea05_25)[June 29](#idb03be0f8f2c48acb565357118e2ea05_25)[, 2025](#idb03be0f8f2c48acb565357118e2ea05_25) [7](#idb03be0f8f2c48acb565357118e2ea05_25) [Unaudited Condensed Consolidated Statements of Cash Flows for the](#idb03be0f8f2c48acb565357118e2ea05_28)[si](#idb03be0f8f2c48acb565357118e2ea05_28)[x](#idb03be0f8f2c48acb565357118e2ea05_28)[#idb03be0f8f2c48acb565357118e2ea05_28](#idb03be0f8f2c48acb565357118e2ea05_28)[months ended](#idb03be0f8f2c48acb565357118e2ea05_28)[June 28](#idb03be0f8f2c48acb565357118e2ea05_28)[, 2026 and](#idb03be0f8f2c48acb565357118e2ea05_28)[June 29](#idb03be0f8f2c48acb565357118e2ea05_28)[, 2025](#idb03be0f8f2c48acb565357118e2ea05_28) [9](#idb03be0f8f2c48acb565357118e2ea05_28) [Notes to Condensed Consolidated Financial Statements](#idb03be0f8f2c48acb565357118e2ea05_31) [10](#idb03be0f8f2c48acb565357118e2ea05_31) [Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations](#idb03be0f8f2c48acb565357118e2ea05_91) [26](#idb03be0f8f2c48acb565357118e2ea05_91) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](#idb03be0f8f2c48acb565357118e2ea05_103) [39](#idb03be0f8f2c48acb565357118e2ea05_103) [Item 4. Controls and Procedures](#idb03be0f8f2c48acb565357118e2ea05_106) [39](#idb03be0f8f2c48acb565357118e2ea05_106) [PART II: OTHER INFORMATION](#idb03be0f8f2c48acb565357118e2ea05_109) [40](#idb03be0f8f2c48acb565357118e2ea05_109) [Item 1. Legal Proceedings](#idb03be0f8f2c48acb565357118e2ea05_112) [42](#idb03be0f8f2c48acb565357118e2ea05_112) [Item 1A. Risk Factors](#idb03be0f8f2c48acb565357118e2ea05_115) [42](#idb03be0f8f2c48acb565357118e2ea05_115) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](#idb03be0f8f2c48acb565357118e2ea05_118) [42](#idb03be0f8f2c48acb565357118e2ea05_118) [Item 6. Exhibits](#idb03be0f8f2c48acb565357118e2ea05_121) [43](#idb03be0f8f2c48acb565357118e2ea05_121) [Signatures](#idb03be0f8f2c48acb565357118e2ea05_124) [44](#idb03be0f8f2c48acb565357118e2ea05_124) PART I. FINANCIAL INFORMATION ## Item 1. Financial Statements. **THE WENDY’S COMPANY AND SUBSIDIARIES** ### CONDENSED CONSOLIDATED BALANCE SHEETS _(In Thousands Except Par Value)_ | ASSETS | June 28,2026 / (Unaudited) | December 28,2025 / (Unaudited) | | --- | --- | --- | | Current assets: | | | | Cash and cash equivalents | $341,211 | $300,833 | | Restricted cash | 38,786 | 39,207 | | Accounts and notes receivable, net | 109,247 | 117,333 | | Inventories | 7,036 | 7,387 | | Prepaid expenses and other current assets | 78,922 | 55,412 | | Advertising funds restricted assets | 102,897 | 97,867 | | Total current assets | 678,099 | 618,039 | | Properties | 895,598 | 937,795 | | Finance lease assets | 319,808 | 312,844 | | Operating lease assets | 582,630 | 642,589 | | Goodwill | 773,119 | 774,088 | | Other intangible assets | 1,147,228 | 1,170,671 | | Investments | 22,988 | 25,227 | | Net investment in sales-type and direct financing leases | 276,853 | 284,891 | | Other assets | 187,893 | 190,417 | | Total assets | $4,884,216 | $4,956,561 | | LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | Current liabilities: | | | | Current portion of long-term debt | $29,750 | $29,750 | | Current portion of finance lease liabilities | 27,538 | 26,673 | | Current portion of operating lease liabilities | 51,953 | 51,119 | | Accounts payable | 21,440 | 30,450 | | Accrued expenses and other current liabilities | 124,713 | 116,655 | | Advertising funds restricted liabilities | 102,078 | 96,454 | | Total current liabilities | 357,472 | 351,101 | | Long-term debt | 2,719,239 | 2,730,502 | | Long-term finance lease liabilities | 647,637 | 646,715 | | Long-term operating lease liabilities | 596,408 | 660,257 | | Deferred income taxes | 289,268 | 287,753 | | Deferred franchise fees | 81,671 | 87,956 | | Other liabilities | 72,054 | 74,894 | | Total liabilities | 4,763,749 | 4,839,178 | | Commitments and contingencies | | | | Stockholders’ equity: | | | | Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 190,639 and 190,324 shares outstanding, respectively | 47,042 | 47,042 | | Additional paid-in capital | 2,990,095 | 2,986,150 | | Retained earnings | 437,099 | 435,124 | | Common stock held in treasury, at cost; 279,785 and 280,100 shares, respectively | (3,283,017) | (3,286,965) | | Accumulated other comprehensive loss | (70,752) | (63,968) | | Total stockholders’ equity | 120,467 | 117,383 | | Total liabilities and stockholders’ equity | $4,884,216 | $4,956,561 | See accompanying notes to condensed consolidated financial statements. THE WENDY’S COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In Thousands Except Per Share Amounts) _(Unaudited)_ | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Revenues: | | | | | | Sales | $240,016 | $232,853 | $465,513 | $452,363 | | Franchise royalty revenue and fees | 149,771 | 156,300 | 297,666 | 301,448 | | Franchise rental income | 53,363 | 60,411 | 112,267 | 118,865 | | Advertising funds revenue | 127,421 | 111,365 | 235,762 | 211,725 | | | 570,571 | 560,929 | 1,111,208 | 1,084,401 | | Costs and expenses: | | | | | | Cost of sales | 207,275 | 196,521 | 408,324 | 384,690 | | Franchise support and other costs | 22,566 | 17,069 | 44,557 | 33,665 | | Franchise rental expense | 28,039 | 32,630 | 58,215 | 63,331 | | Advertising funds expense | 127,879 | 111,374 | 236,494 | 212,902 | | General and administrative | 66,161 | 59,485 | 139,004 | 127,689 | | Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 38,061 | 36,990 | 78,636 | 73,539 | | Amortization of cloud computing arrangements | 4,577 | 4,056 | 9,339 | 8,223 | | System optimization gains, net | (667) | (387) | (2,292) | (297) | | Reorganization and realignment costs | 10 | 174 | (152) | (518) | | Impairment of long-lived assets | 3,120 | 1,686 | 5,692 | 3,107 | | Other operating income, net | (5,734) | (2,929) | (10,814) | (9,316) | | | 491,287 | 456,669 | 967,003 | 897,015 | | Operating profit | 79,284 | 104,260 | 144,205 | 187,386 | | Interest expense, net | (33,850) | (30,945) | (67,956) | (62,422) | | Investment loss, net | — | — | — | (1,718) | | Other income, net | 3,133 | 2,585 | 6,483 | 7,571 | | Income before income taxes | 48,567 | 75,900 | 82,732 | 130,817 | | Provision for income taxes | (15,951) | (20,790) | (27,404) | (36,475) | | Net income | $32,616 | $55,110 | $55,328 | $94,342 | | Basic and diluted net income per share | $.17 | $.29 | $.29 | $.48 | See accompanying notes to condensed consolidated financial statements. THE WENDY’S COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands) _(Unaudited)_ | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Net income | $32,616 | $55,110 | $55,328 | $94,342 | | Other comprehensive (loss) income: | | | | | | Foreign currency translation adjustment | (3,988) | 10,305 | (6,784) | 12,217 | | Other comprehensive (loss) income | (3,988) | 10,305 | (6,784) | 12,217 | | Comprehensive income | $28,628 | $65,415 | $48,544 | $106,559 | See accompanying notes to condensed consolidated financial statements. THE WENDY’S COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (In Thousands) _(Unaudited)_ | Line item | Common Stock | Additional Paid-In Capital | Retained Earnings | Common Stock Held in Treasury | Accumulated Other Comprehensive Loss | Total | | --- | --- | --- | --- | --- | --- | --- | | Balance at December 28, 2025 | $47,042 | $2,986,150 | $435,124 | $(3,286,965) | $(63,968) | $117,383 | | Net income | — | — | 22,712 | — | — | 22,712 | | Other comprehensive loss | — | — | — | — | (2,796) | (2,796) | | Cash dividends | — | — | (26,648) | — | — | (26,648) | | Share-based compensation | — | 5,246 | — | — | — | 5,246 | | Common stock issued upon vesting of restricted shares | — | (2,006) | — | 1,583 | — | (423) | | Other | — | (35) | (15) | 127 | — | 77 | | Balance at March 29, 2026 | $47,042 | $2,989,355 | $431,173 | $(3,285,255) | $(66,764) | $115,551 | | Net income | — | — | 32,616 | — | — | 32,616 | | Other comprehensive loss | — | — | — | — | (3,988) | (3,988) | | Cash dividends | — | — | (26,668) | — | — | (26,668) | | Share-based compensation | — | 2,941 | — | — | — | 2,941 | | Common stock issued upon vesting of restricted shares | — | (2,162) | — | 2,136 | — | (26) | | Other | — | (39) | (22) | 102 | — | 41 | | Balance at June 28, 2026 | $47,042 | $2,990,095 | $437,099 | $(3,283,017) | $(70,752) | $120,467 | See accompanying notes to condensed consolidated financial statements. THE WENDY’S COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY—CONTINUED (In Thousands) _(Unaudited)_ | Line item | Common Stock | Additional Paid-In Capital | Retained Earnings | Common Stock Held in Treasury | Accumulated Other Comprehensive Loss | Total | | --- | --- | --- | --- | --- | --- | --- | | Balance at December 29, 2024 | $47,042 | $2,982,102 | $399,700 | $(3,094,739) | $(74,753) | $259,352 | | Net income | — | — | 39,232 | — | — | 39,232 | | Other comprehensive income | — | — | — | — | 1,912 | 1,912 | | Cash dividends | — | — | (49,432) | — | — | (49,432) | | Repurchases of common stock | — | — | — | (125,399) | — | (125,399) | | Share-based compensation | — | 5,572 | — | — | — | 5,572 | | Common stock issued upon exercises of stock options | — | (130) | — | 326 | — | 196 | | Common stock issued upon vesting of restricted shares | — | (2,702) | — | 1,453 | — | (1,249) | | Other | — | 23 | (19) | 51 | — | 55 | | Balance at March 30, 2025 | $47,042 | $2,984,865 | $389,481 | $(3,218,308) | $(72,841) | $130,239 | | Net income | — | — | 55,110 | — | — | 55,110 | | Other comprehensive income | — | — | — | — | 10,305 | 10,305 | | Cash dividends | — | — | (26,811) | — | — | (26,811) | | Repurchases of common stock | — | — | — | (62,558) | — | (62,558) | | Share-based compensation | — | 5,132 | — | — | — | 5,132 | | Common stock issued upon exercises of stock options | — | (245) | — | 1,689 | — | 1,444 | | Common stock issued upon vesting of restricted shares | — | (1,504) | — | 1,476 | — | (28) | | Other | — | 17 | (15) | 53 | — | 55 | | Balance at June 29, 2025 | $47,042 | $2,988,265 | $417,765 | $(3,277,648) | $(62,536) | $112,888 | See accompanying notes to condensed consolidated financial statements. THE WENDY’S COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands) _(Unaudited)_ | Line item | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | | Cash flows from operating activities: | | | | Net income | $55,328 | $94,342 | | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 78,636 | 73,539 | | Amortization of cloud computing arrangements | 9,339 | 8,223 | | Share-based compensation | 8,187 | 10,704 | | Impairment of long-lived assets | 5,692 | 3,107 | | Deferred income tax | 1,375 | 822 | | Non-cash rental expense, net | 25,938 | 21,406 | | Change in operating lease liabilities | (25,247) | (24,482) | | Net receipt of deferred vendor incentives | 9,781 | 8,421 | | System optimization gains, net | (2,292) | (297) | | Distributions received from joint ventures, net of equity in earnings | 1,221 | 1,679 | | Long-term debt-related activities, net | 3,612 | 3,744 | | Cloud computing arrangements expenditures | (10,241) | (9,335) | | Changes in operating assets and liabilities and other, net | (1,372) | (45,865) | | Net cash provided by operating activities | 159,957 | 146,008 | | Cash flows from investing activities: | | | | Capital expenditures | (31,439) | (39,050) | | Franchise development fund | (10,998) | (16,518) | | Dispositions | 4,664 | 1,355 | | Notes receivable, net | — | 1,949 | | Net cash used in investing activities | (37,773) | (52,264) | | Cash flows from financing activities: | | | | Proceeds from long-term debt | 17,800 | 23,500 | | Repayments of long-term debt | (32,675) | (23,125) | | Repayments of finance lease liabilities | (12,106) | (10,666) | | Repurchases of common stock | (1,922) | (186,516) | | Dividends | (53,316) | (76,243) | | Proceeds from stock option exercises | — | 1,717 | | Payments related to tax withholding for share-based compensation | (449) | (1,354) | | Net cash used in financing activities | (82,668) | (272,687) | | Net cash provided by (used in) operations before effect of exchange rate changes on cash | 39,516 | (178,943) | | Effect of exchange rate changes on cash | (2,408) | 5,437 | | Net increase (decrease) in cash, cash equivalents and restricted cash | 37,108 | (173,506) | | Cash, cash equivalents and restricted cash at beginning of period | 357,672 | 503,608 | | Cash, cash equivalents and restricted cash at end of period | $394,780 | $330,102 | See accompanying notes to condensed consolidated financial statements. THE WENDY’S COMPANY AND SUBSIDIARIES ### NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) (1) Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position as of June 28, 2026, the results of our operations for the three and six months ended June 28, 2026 and June 29, 2025 and cash flows for the six months ended June 28, 2026 and June 29, 2025. The results of operations for the six months ended June 28, 2026 are not necessarily indicative of the results to be expected for the full 2026 fiscal year. The Financial Statements should be read in conjunction with the audited consolidated financial statements for The Wendy’s Company and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025 (the “Form 10-K”). The principal 100% owned subsidiary of the Company is Wendy’s International, LLC and its subsidiaries (“Wendy’s”). The Company manages and internally reports its business in the following segments: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development. See Note 17 for further information. We report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to or on December 31. All three- and six-month periods presented herein contain 13 weeks and 26 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our significant interim accounting policies include the recognition of advertising funds expense in proportion to advertising funds revenue. (2) Revenue Disaggregation of Revenue The following tables disaggregate revenue by segment and source: | Three Months Ended June 28, 2026 | Wendy’s U.S. | Wendy’s International | Global Real Estate & Development | Total | | --- | --- | --- | --- | --- | | Sales at Company-operated restaurants | $234,007 | $6,009 | — | $240,016 | | Franchise royalty revenue | 103,749 | 19,825 | — | 123,574 | | Franchise fees | 22,126 | 3,726 | 345 | 26,197 | | Franchise rental income | — | — | 53,363 | 53,363 | | Advertising funds revenue | 117,715 | 9,706 | — | 127,421 | | Total revenues | $477,597 | $39,266 | $53,708 | $570,571 | | Three Months Ended June 29, 2025 | | | | | | Sales at Company-operated restaurants | $225,973 | $6,880 | — | $232,853 | | Franchise royalty revenue | 112,842 | 19,391 | — | 132,233 | | Franchise fees | 20,972 | 2,569 | 526 | 24,067 | | Franchise rental income | — | — | 60,411 | 60,411 | | Advertising funds revenue | 101,355 | 10,010 | — | 111,365 | | Total revenues | $461,142 | $38,850 | $60,937 | $560,929 | THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) | Six Months Ended June 28, 2026 | Wendy’s U.S. | Wendy’s International | Global Real Estate & Development | Total | | --- | --- | --- | --- | --- | | Sales at Company-operated restaurants | $453,302 | $12,211 | — | $465,513 | | Franchise royalty revenue | 201,057 | 38,707 | — | 239,764 | | Franchise fees | 50,409 | 6,501 | 992 | 57,902 | | Franchise rental income | — | — | 112,267 | 112,267 | | Advertising funds revenue | 216,988 | 18,774 | — | 235,762 | | Total revenues | $921,756 | $76,193 | $113,259 | $1,111,208 | | Six Months Ended June 29, 2025 | | | | | | Sales at Company-operated restaurants | $438,717 | $13,646 | — | $452,363 | | Franchise royalty revenue | 217,248 | 36,660 | — | 253,908 | | Franchise fees | 41,676 | 4,655 | 1,209 | 47,540 | | Franchise rental income | — | — | 118,865 | 118,865 | | Advertising funds revenue | 193,115 | 18,610 | — | 211,725 | | Total revenues | $890,756 | $73,571 | $120,074 | $1,084,401 | Contract Balances The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: | Line item | June 28, 2026 (a) | December 28, 2025 (a) | | --- | --- | --- | | Receivables, which are included in “Accounts and notes receivable, net” (b) | $68,178 | $59,060 | | Receivables, which are included in “Advertising funds restricted assets” | 83,169 | 75,083 | | Deferred franchise fees (c) | 90,724 | 98,496 | (a)Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations. (b)Includes receivables related to “Sales” and “Franchise royalty revenue and fees.” (c)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $9,053 and $81,671, respectively, as of June 28, 2026, and $10,540 and $87,956, respectively, as of December 28, 2025. Significant changes in deferred franchise fees are as follows: | Line item | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | | Deferred franchise fees at beginning of period | $98,496 | $99,411 | | Revenue recognized during the period | (8,598) | (4,438) | | New deferrals due to cash received and other | 826 | 4,424 | | Deferred franchise fees at end of period | $90,724 | $99,397 | THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) Anticipated Future Recognition of Deferred Franchise Fees The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: | Estimate for fiscal year: | | | | --- | --- | --- | | 2026 (a) | $ | $9,052 | | 2027 | 6,561 | | | 2028 | 6,395 | | | 2029 | 6,291 | | | 2030 | 6,187 | | | Thereafter | 56,238 | | | | $ | $90,724 | (a)Represents franchise fees expected to be recognized for the remainder of 2026, which includes development-related franchise fees expected to be recognized over a duration of one year or less. (3) Leases Nature of Leases The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. The Company also leases restaurant, office and transportation equipment. As of June 28, 2026, the nature of restaurants operated by the Company and its franchisees was as follows: _June 28,2026_ | | | | --- | --- | | Company-operated restaurants: | | | Owned land and building | 154 | | Owned building and held long-term land leases | 141 | | Leased land and building | 135 | | Total Company-operated restaurants | 430 | | Franchisee-operated restaurants: | | | Company-owned properties leased to franchisees | 443 | | Company-leased properties subleased to franchisees | 1,088 | | Other franchisee-operated restaurants | 5,219 | | Total franchisee-operated restaurants | 6,750 | | Total Company-operated and franchisee-operated restaurants | 7,180 | THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) Company as Lessee The components of lease cost are as follows: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Finance lease cost: | | | | | | Amortization of finance lease assets | $5,358 | $4,885 | $11,126 | $10,030 | | Interest on finance lease liabilities | 11,615 | 10,865 | 23,257 | 21,742 | | | 16,973 | 15,750 | 34,383 | 31,772 | | Operating lease cost | 17,381 | 21,322 | 37,391 | 41,839 | | Variable lease cost (a) | 16,570 | 17,269 | 32,479 | 33,482 | | Short-term lease cost | 1,390 | 1,304 | 2,766 | 2,570 | | Total operating lease cost (b) | 35,341 | 39,895 | 72,636 | 77,891 | | Total lease cost | $52,314 | $55,645 | $107,019 | $109,663 | (a)Includes expenses for executory costs of $10,297 and $10,578 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $20,836 and $20,972 for the six months ended June 28, 2026 and June 29, 2025, respectively, for which the Company is reimbursed by sublessees. (b)Includes $27,953 and $32,569 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $57,993 and $63,221 for the six months ended June 28, 2026 and June 29, 2025, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $6,917 and $6,946 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $13,804 and $13,887 for the six months ended June 28, 2026 and June 29, 2025, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants. Company as Lessor The components of lease income are as follows: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Sales-type and direct-financing leases: | | | | | | Selling profit | $276 | $34 | $2,129 | $23 | | Interest income (a) | 6,563 | 6,943 | 13,263 | 13,858 | | Operating lease income | 36,038 | 42,467 | 78,689 | 84,888 | | Variable lease income | 17,325 | 17,944 | 33,578 | 33,977 | | Franchise rental income (b) | $53,363 | $60,411 | $112,267 | $118,865 | (a)Included in “Interest expense, net.” (b)Includes sublease income of $37,941 and $44,667 recognized during the three months ended June 28, 2026 and June 29, 2025, respectively, and $80,141 and $87,451 for the six months ended June 28, 2026 and June 29, 2025, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,356 and $10,512 for the three months ended June 28, 2026 and June 29, 2025, respectively, and $20,767 and $20,709 for the six months ended June 28, 2026 and June 29, 2025, respectively. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) (4) Investments Equity Method Investment Wendy’s has a 50% share in a partnership in a Canadian restaurant real estate joint venture (“TimWen”) with a subsidiary of Restaurant Brands International Inc., a quick-service restaurant company that owns the Tim Hortons® brand (Tim Hortons is a registered trademark of Tim Hortons USA Inc.). The Company has significant influence over this investee. Such investment is accounted for using the equity method, under which our results of operations include our share of the income of the investee in “Other operating income, net.” Presented below is activity related to our investment in TimWen included in our condensed consolidated financial statements: | Line item | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | | Balance at beginning of period | $25,227 | $27,288 | | Equity in earnings for the period | 6,476 | 6,514 | | Amortization of purchase price adjustments (a) | (940) | (1,202) | | | 5,536 | 5,312 | | Distributions received | (6,757) | (6,991) | | Foreign currency translation adjustment included in “Other comprehensive (loss) income” | (1,018) | 1,483 | | Balance at end of period | $22,988 | $27,092 | (a)Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years. Other Investments in Equity Securities During the six months ended June 29, 2025, the Company recorded an impairment charge of $1,718 for the difference between the estimated fair value and the carrying value of an investment in equity securities. As a result, the carrying value of the investment was zero as of June 29, 2025. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) (5) Long-Term Debt Long-term debt consisted of the following: | Line item | June 28,2026 | December 28,2025 | | --- | --- | --- | | Class A-2 Notes: | | | | 5.422% Series 2025-1 Class A-2-I Notes, anticipated repayment date 2032 | $447,750 | $450,000 | | 4.236% Series 2022-1 Class A-2-I Notes, anticipated repayment date 2029 | 96,000 | 96,500 | | 4.535% Series 2022-1 Class A-2-II Notes, anticipated repayment date 2032 | 380,134 | 382,134 | | 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 | 412,019 | 414,269 | | 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 | 617,280 | 620,530 | | 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 | 391,873 | 394,123 | | 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 | 429,224 | 431,599 | | Unamortized debt issuance costs | (25,291) | (28,903) | | | 2,748,989 | 2,760,252 | | Less amounts payable within one year | (29,750) | (29,750) | | Total long-term debt | $2,719,239 | $2,730,502 | Other Long-Term Debt Wendy’s U.S. advertising fund has a revolving line of credit of $15,000, which was established to support the Company’s advertising fund operations and bears interest at the Secured Overnight Financing Rate (“SOFR”) plus 2.25%. Borrowings under the line of credit are guaranteed by Wendy’s. During the three months ended March 29, 2026, the Company borrowed and repaid $11,500 under the revolving line of credit, then subsequently borrowed and repaid $3,600 under the revolving line of credit. During the three months ended June 28, 2026, the Company borrowed and repaid $2,700 under the revolving line of credit. As a result, as of June 28, 2026, the Company had no outstanding borrowings under the revolving line of credit. Subsequent to June 28, 2026, the Company increased the Wendy’s U.S. advertising fund revolving line of credit to $25,000. (6) Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy: - Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets. - Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. - Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: | Line item | June 28,2026 / Carrying Amount | June 28,2026 / Fair Value | December 28,2025 / Carrying Amount | December 28,2025 / Fair Value | Fair Value Measurements | | --- | --- | --- | --- | --- | --- | | Financial assets | | | | | | | Cash equivalents | $220,093 | $220,093 | $210,607 | $210,607 | Level 1 | | Financial liabilities (a) | | | | | | | Series 2025-1 Class A-2-I Notes | 447,750 | 441,034 | 450,000 | 447,075 | Level 2 | | Series 2022-1 Class A-2-I Notes | 96,000 | 93,221 | 96,500 | 95,284 | Level 2 | | Series 2022-1 Class A-2-II Notes | 380,134 | 360,671 | 382,134 | 371,625 | Level 2 | | Series 2021-1 Class A-2-I Notes | 412,019 | 379,894 | 414,269 | 385,726 | Level 2 | | Series 2021-1 Class A-2-II Notes | 617,280 | 542,509 | 620,530 | 553,699 | Level 2 | | Series 2019-1 Class A-2-II Notes | 391,873 | 375,884 | 394,123 | 383,403 | Level 2 | | Series 2018-1 Class A-2-II Notes | 429,224 | 419,301 | 431,599 | 421,630 | Level 2 | (a)The fair values were based on quoted market prices in markets that are not considered active markets. The carrying amounts of cash, accounts payable and accrued expenses approximate fair value due to the short-term nature of those items. The carrying amounts of accounts and notes receivable, net (both current and non-current) approximate fair value due to the effect of the related allowance for doubtful accounts. Our cash equivalents are the only financial assets measured and recorded at fair value on a recurring basis. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) Non-Recurring Fair Value Measurements Assets and liabilities remeasured to fair value on a non-recurring basis resulted in impairment that we have recorded to “Impairment of long-lived assets” in our condensed consolidated statements of operations. Total impairment losses may reflect the impact of remeasuring long-lived assets held and used (including land, buildings, leasehold improvements, favorable lease assets and right-of-use assets) to fair value as a result of (1) the deterioration in operating performance of certain Company-operated restaurants and (2) the Company’s decision to lease and/or sublease the land and/or buildings to franchisees in connection with the sale or anticipated sale of restaurants, including any subsequent lease modifications. The fair values of long-lived assets held and used presented in the tables below represent the remaining carrying value and were estimated based on either discounted cash flows of future anticipated lease and sublease income or discounted cash flows of future anticipated Company-operated restaurant performance. Total impairment losses may also include the impact of remeasuring long-lived assets held for sale. The fair values of long-lived assets held for sale presented in the tables below represent the remaining carrying value and were estimated based on current market values. See Note 12 for further information on impairment of our long-lived assets. | Line item | June 28,2026 | Fair Value Measurements / Level 1 | Fair Value Measurements / Level 2 | Fair Value Measurements / Level 3 | | --- | --- | --- | --- | --- | | Held and used | $2,229 | — | — | $2,229 | | Held for sale | 3,476 | — | — | 3,476 | | Total | $5,705 | — | — | $5,705 | | Line item | December 28,2025 | Fair Value Measurements / Level 1 | Fair Value Measurements / Level 2 | Fair Value Measurements / Level 3 | | --- | --- | --- | --- | --- | | Held and used | $1,367 | — | — | $1,367 | | Held for sale | 2,457 | — | — | 2,457 | | Total | $3,824 | — | — | $3,824 | (7) Income Taxes The Company’s effective tax rate for the three months ended June 28, 2026 and June 29, 2025 was 32.8% and 27.4%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the three months ended June 28, 2026 primarily due to the tax effects of our foreign operations and state income taxes. The Company’s effective tax rate for the six months ended June 28, 2026 and June 29, 2025 was 33.1% and 27.9%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the six months ended June 28, 2026 primarily due to the tax effects of our foreign operations, state income taxes and share-based compensation. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) (8) Net Income Per Share The calculation of basic and diluted net income per share was as follows: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Net income | $32,616 | $55,110 | $55,328 | $94,342 | | Common stock: | | | | | | Weighted average basic shares outstanding | 190,426 | 191,949 | 190,359 | 196,296 | | Dilutive effect of stock options and restricted shares | 786 | 765 | 696 | 870 | | Weighted average diluted shares outstanding | 191,212 | 192,714 | 191,055 | 197,166 | | Basic and diluted net income per share | $.17 | $.29 | $.29 | $.48 | Basic net income per share for the three and six months ended June 28, 2026 and June 29, 2025 was computed by dividing net income amounts by the weighted average number of shares of common stock outstanding. Diluted net income per share was computed by dividing net income by the weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options and restricted shares. We excluded potential common shares of 12,516 and 12,221 for the three and six months ended June 28, 2026, respectively, and 7,990 and 8,139 for the three and six months ended June 29, 2025, respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects. (9) Stockholders’ Equity Dividends During each of the first and second quarters of 2026, the Company paid dividends per share of $.14. During the first and second quarters of 2025, the Company paid dividends per share of $.25 and $.14, respectively. Repurchases of Common Stock In January 2023, our Board of Directors authorized a repurchase program for up to $500,000 of our common stock through February 28, 2027, when and if market conditions warrant and to the extent legally permissible (the “January 2023 Authorization”). During the six months ended June 28, 2026, no shares were repurchased under the January 2023 Authorization. During the six months ended June 28, 2026, the Company paid $1,922 in excise tax on shares repurchased during 2025. As of June 28, 2026, the Company had $35,000 of availability remaining under the January 2023 Authorization. During the six months ended June 29, 2025, the Company repurchased 12,957 shares under the January 2023 Authorization with an aggregate purchase price of $185,962, of which $193 was accrued as of June 29, 2025, and excluding excise tax of $1,813 and commissions of $182. During the six months ended June 29, 2025, the Company paid $565 in excise tax on shares repurchased during 2024. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) Accumulated Other Comprehensive Loss The following table provides a rollforward of accumulated other comprehensive loss, which is entirely comprised of foreign currency translation: | Line item | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | | Balance at beginning of period | $(63,968) | $(74,753) | | Foreign currency translation | (6,784) | 12,217 | | Balance at end of period | $(70,752) | $(62,536) | (10) System Optimization Gains, Net The Company optimizes the Wendy’s system by facilitating franchisee-to-franchisee restaurant transfers (“Franchise Flips”), evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees and, at times, closing certain underperforming restaurants, to further strengthen the franchisee base, support franchisee economics and drive new restaurant development. During the six months ended June 28, 2026 and June 29, 2025, the Company facilitated 45 and one Franchise Flips, respectively. Additionally, during the six months ended June 28, 2026 and June 29, 2025, the Company completed the sale of four and two Company-operated restaurants to franchisees, respectively. Gains and losses recognized on dispositions are recorded to “System optimization gains, net” in our condensed consolidated statements of operations. Costs related to acquisitions and dispositions under our system optimization initiative are recorded to “Reorganization and realignment costs.” All other costs incurred related to facilitating Franchise Flips are recorded to “Franchise support and other costs.” The following is a summary of the disposition activity recorded as a result of our system optimization initiative: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Number of restaurants sold to franchisees | 1 | — | 4 | 2 | | Proceeds from sales of restaurants (a) | $588 | — | $2,392 | $55 | | Net assets sold (b) | (567) | — | (2,139) | (169) | | Other | (21) | — | (253) | (25) | | Loss on sales of restaurants, net | — | — | — | (139) | | Post-closing adjustments on sales of restaurants | — | (10) | — | (10) | | Loss on sales of restaurants, net | — | (10) | — | (149) | | Gain on sales of other assets, net (c) | 667 | 397 | 2,292 | 446 | | System optimization gains, net | $667 | $387 | $2,292 | $297 | (a)During the three and six months ended June 28, 2026, the Company received net cash proceeds of $588 and $2,392, respectively, related to the sale of Company-operated restaurants as part of the Company’s strategic build to suit development fund. These proceeds are included within operating activities in the Company’s condensed consolidated statements of cash flows. (b)Net assets sold consisted primarily of equipment. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) (c)During the three and six months ended June 28, 2026, the Company received net cash proceeds of $1,868 and $4,664, respectively, primarily from the sale of surplus and other properties. During the three and six months ended June 29, 2025, the Company received net cash proceeds of $1,300 primarily from the sale of surplus and other properties. Assets Held for Sale As of June 28, 2026 and December 28, 2025, the Company had assets held for sale of $27,152 and $3,696, respectively, primarily consisting of surplus properties. Assets held for sale are included in “Prepaid expenses and other current assets.” (11) Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:” | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Organizational Redesign Plan | $3 | $106 | $(198) | $(844) | | Other reorganization and realignment plans | 7 | 68 | 46 | 326 | | Reorganization and realignment costs | $10 | $174 | $(152) | $(518) | Organizational Redesign In February 2023, the Board of Directors approved a plan to redesign the Company’s organizational structure to better support the execution of the Company’s long-term growth strategy by maximizing organizational efficiency and streamlining decision making (the “Organizational Redesign Plan”). Additionally, in January 2024, the Board of Directors announced the appointment of a new President and Chief Executive Officer and the departure of the Company’s previous President and Chief Executive Officer. During the six months ended June 28, 2026 and June 29, 2025, the Company recognized costs totaling $(198) and $(844), respectively, which primarily included reversals of severance accruals. The Company does not expect to incur any material additional costs under the Organizational Redesign Plan. The following is a summary of the costs recorded as a result of the Organizational Redesign Plan: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | Total Incurred Since Inception | | --- | --- | --- | --- | --- | --- | | Severance and related employee costs (a) | — | $(6) | $(228) | $(1,094) | $12,098 | | Recruitment and relocation costs | — | — | — | 13 | 736 | | Third-party and other costs | — | — | — | — | 1,116 | | | — | (6) | (228) | (1,081) | 13,950 | | Share-based compensation (b) | 3 | 112 | 30 | 237 | 2,530 | | Total organizational redesign | $3 | $106 | $(198) | $(844) | $16,480 | (a)The six months ended June 28, 2026 and June 29, 2025 include reversals of severance accruals as a result of changes in estimates. (b)Total incurred since inception primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) As of June 28, 2026, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities.” The tables below present a rollforward of our accruals for the Organizational Redesign Plan. | Line item | Balance December 28,2025 | Charges | Payments | Balance June 28,2026 | | --- | --- | --- | --- | --- | | Severance and related employee costs | $378 | $(228) | $(144) | $6 | | Recruitment and relocation costs | — | — | — | — | | Third-party and other costs | — | — | — | — | | | $378 | $(228) | $(144) | $6 | | Line item | Balance December 29,2024 | Charges | Payments | Balance June 29,2025 | | --- | --- | --- | --- | --- | | Severance and related employee costs | $4,257 | $(1,094) | $(1,897) | $1,266 | | Recruitment and relocation costs | — | 13 | (13) | — | | Third-party and other costs | — | — | — | — | | | $4,257 | $(1,081) | $(1,910) | $1,266 | Other Reorganization and Realignment Plans Costs incurred under the Company’s other reorganization and realignment plans were not material during the six months ended June 28, 2026 and June 29, 2025. The Company does not expect to incur any material additional costs under these plans. (12) Impairment of Long-Lived Assets The Company records impairment charges as a result of (1) the deterioration in operating performance of certain Company-operated restaurants, (2) the Company’s decision to lease and/or sublease properties to franchisees in connection with the sale or anticipated sale of Company-operated restaurants, including any subsequent lease modifications and (3) classifying surplus properties as held for sale. The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets:” | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Company-operated restaurants | $2,611 | $1,686 | $3,780 | $2,873 | | Restaurants leased or subleased to franchisees | 179 | — | 1,537 | — | | Surplus properties | 330 | — | 375 | 234 | | | $3,120 | $1,686 | $5,692 | $3,107 | (13) Supplemental Cash Flow Information The following table includes supplemental non-cash investing and financing activities: | Line item | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | | Supplemental non-cash investing and financing activities: | | | | Capital expenditures included in accounts payable | $5,740 | $7,166 | | Finance leases | 31,646 | 29,347 | THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) The following table includes a reconciliation of cash, cash equivalents and restricted cash: | Line item | June 28,2026 | December 28,2025 | | --- | --- | --- | | Reconciliation of cash, cash equivalents and restricted cash at end of period: | | | | Cash and cash equivalents | $341,211 | $300,833 | | Restricted cash | 38,786 | 39,207 | | Restricted cash, included in Advertising funds restricted assets | 14,783 | 17,632 | | Total cash, cash equivalents and restricted cash | $394,780 | $357,672 | (14) Guarantees and Other Commitments and Contingencies Except as described below, the Company did not have any significant changes in guarantees and other commitments and contingencies during the current fiscal period since those reported in the Form 10-K. Refer to the Form 10-K for further information regarding the Company’s additional commitments and obligations. Lease Guarantees Wendy’s has guaranteed the performance of certain leases and other obligations, primarily from former Company-operated restaurant locations now operated by franchisees, amounting to $99,500 as of June 28, 2026. These leases extend through 2045. We have had no judgments against us as guarantor of these leases as of June 28, 2026. In the event of default by a franchise owner where Wendy’s is called upon to perform under its guarantee, Wendy’s has the ability to pursue repayment from the franchise owner. The liability recorded for our probable exposure associated with these lease guarantees was not material as of June 28, 2026. Letters of Credit As of June 28, 2026, the Company had outstanding letters of credit with various parties totaling $29,185. Substantially all of the outstanding letters of credit include amounts outstanding against the 2021-1 Variable Funding Senior Secured Notes, Class A-1. We do not expect any material loss to result from these letters of credit. (15) Transactions with Related Parties Except as described below, the Company did not have any significant changes in or transactions with its related parties during the current fiscal period since those reported in the Form 10-K. TimWen Lease and Management Fee Payments A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen, which are then subleased to franchisees for the operation of Wendy’s/Tim Hortons combo units in Canada. Wendy’s paid TimWen $10,126 and $10,344 under these lease agreements during the six months ended June 28, 2026 and June 29, 2025, respectively, which has been recorded to “Franchise rental expense.” In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $118 and $115 during the six months ended June 28, 2026 and June 29, 2025, respectively, which is included as a reduction to “General and administrative.” Transactions with Yellow Cab Certain family members and/or affiliates of Mr. Nelson Peltz, our former Chairman and Chairman Emeritus, Mr. Peter May, our Senior Vice Chairman, and Mr. Matthew Peltz, our former Vice Chairman, hold minority ownership interests in Yellow Cab Holdings, LLC (“Yellow Cab”), a Wendy’s franchisee that, as of June 28, 2026 owned and operated 87 Wendy’s restaurants, and/or certain of the operating companies managed by Yellow Cab. In addition, Mr. Bradley Peltz, a director of the Company, is a Managing Director of, and holds a minority ownership interest in, Yellow Cab. During the six months ended June 28, 2026 and June 29, 2025, the Company recognized $7,822 and $7,588, respectively, in royalty, advertising fund, lease and other income from Yellow Cab and related entities. In all transactions involving Yellow Cab, the Company’s standard THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) franchisee recruiting and approval processes were followed, no modifications were made to the Company’s standard franchise agreements or related documents, and all deal terms and transaction documents were negotiated and executed on an arm’s-length basis, consistent with the Company’s comparable franchise transactions and relationships. As of June 28, 2026 and December 28, 2025, $1,338 and $1,045, respectively, was due from Yellow Cab for such income, which is included in “Accounts and notes receivable, net” and “Advertising funds restricted assets.” Transactions with AMC Ms. Kristin Dolan, a director of the Company until May 2026, serves as the Chief Executive Officer of AMC Networks Inc. (“AMC”). During the six months ended June 29, 2025, the Company purchased approximately $600 of advertising time from a subsidiary of AMC. During the six months ended June 28, 2026, no advertising time was purchased from a subsidiary of AMC. The Company’s advertising spend with AMC was made in the ordinary course of business and approved on an arm’s-length basis, consistent with the Company’s comparable advertising decisions. There were no amounts due to AMC as of June 28, 2026 and December 28, 2025. (16) Legal and Environmental Matters The Company is involved in litigation and claims incidental to our business. We provide accruals for such litigation and claims when we determine it is probable that a liability has been incurred and the loss is reasonably estimable. The Company believes it has adequate accruals for all of its legal and environmental matters. We cannot estimate the aggregate possible range of loss for our existing litigation and claims due to various reasons, including, but not limited to, many proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur and significant factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently difficult and future developments could cause these actions or claims, individually or in aggregate, to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows of a particular reporting period. (17) Segment Information Wendy’s U.S. revenue, significant segment expenses and segment adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) are as follows: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Wendy’s U.S. revenue | $477,597 | $461,142 | $921,756 | $890,756 | | Wendy’s U.S. expense | | | | | | Cost of sales | 201,605 | 189,258 | 395,901 | 370,495 | | Franchise support and other costs | 17,275 | 13,677 | 35,531 | 26,855 | | Advertising fund expense | 117,715 | 101,355 | 216,988 | 193,115 | | General and administrative | 20,516 | 19,619 | 42,974 | 42,043 | | Other segment items (a) | 12 | 74 | 25 | 112 | | Wendy’s U.S. adjusted EBITDA | $120,474 | $137,159 | $230,337 | $258,136 | (a)Other segment items for the three and six months ended June 28, 2026 and June 29, 2025 primarily include professional fees. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) Wendy’s International revenue, significant segment expenses and segment adjusted EBITDA are as follows: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Wendy’s International revenue | $39,266 | $38,850 | $76,193 | $73,571 | | Wendy’s International expense | | | | | | Cost of sales | 5,670 | 7,263 | 12,423 | 14,195 | | Advertising fund expense (a) | 10,459 | 10,159 | 19,530 | 20,071 | | General and administrative | 7,392 | 6,700 | 15,617 | 13,137 | | Other segment items (b) | 3,822 | 1,502 | 6,121 | 3,498 | | Wendy’s International adjusted EBITDA | $11,923 | $13,226 | $22,502 | $22,670 | (a)Includes advertising fund expense of $183 and $342 for the three and six months ended June 29, 2025, respectively, related to the Company’s funding of incremental advertising. There was no funding of incremental advertising during the three and six months ended June 28, 2026. In addition, includes other international-related advertising (deficit) surplus of $(753) and $(756) for the three and six months ended June 28, 2026, respectively, and $34 and $(1,119) for the three and six months ended June 29, 2025, respectively. (b)Other segment items primarily include franchise support and other costs. Global Real Estate & Development revenue, significant segment expenses and segment adjusted EBITDA are as follows: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Global Real Estate & Development revenue | $53,708 | $60,937 | $113,259 | $120,074 | | Global Real Estate & Development expense | | | | | | Franchise rental expense | 28,039 | 32,630 | 58,215 | 63,331 | | General and administrative | 3,104 | 2,650 | 8,401 | 7,870 | | Other segment items (a) | (4,898) | (1,627) | (8,872) | (3,087) | | Global Real Estate & Development adjusted EBITDA | $27,463 | $27,284 | $55,515 | $51,960 | (a)Other segment items for the three and six months ended June 28, 2026 primarily include equity in earnings from our TimWen joint venture and lease buyout activity. Other segment items for the three and six months ended June 29, 2025 primarily include equity in earnings from our TimWen joint venture and franchise support and other costs. Equity in earnings from our TimWen joint venture was $3,173 and $5,536 for the three and six months ended June 28, 2026, respectively, and $3,060 and $5,312 for the three and six months ended June 29, 2025, respectively. THE WENDY’S COMPANY AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (In Thousands Except Per Share Amounts) The following table reconciles profit by segment to the Company’s consolidated income before income taxes: | Line item | Three Months Ended / June 28,2026 | Three Months Ended / June 29,2025 | Six Months Ended / June 28,2026 | Six Months Ended / June 29,2025 | | --- | --- | --- | --- | --- | | Wendy’s U.S. | $120,474 | $137,159 | $230,337 | $258,136 | | Wendy’s International | 11,923 | 13,226 | 22,502 | 22,670 | | Global Real Estate & Development | 27,463 | 27,284 | 55,515 | 51,960 | | Total segment adjusted EBITDA | 159,860 | 177,669 | $308,354 | $332,766 | | Unallocated franchise support and other costs | (769) | (658) | (1,079) | (1,245) | | Advertising funds surplus | 295 | 140 | 24 | 284 | | Unallocated general and administrative (a) | (35,149) | (30,516) | (72,012) | (64,639) | | Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | (38,061) | (36,990) | (78,636) | (73,539) | | Amortization of cloud computing arrangements | (4,577) | (4,056) | (9,339) | (8,223) | | System optimization gains, net | 667 | 387 | 2,292 | 297 | | Reorganization and realignment costs | (10) | (174) | 152 | 518 | | Impairment of long-lived assets | (3,120) | (1,686) | (5,692) | (3,107) | | Unallocated other operating income, net | 148 | 144 | 141 | 4,274 | | Interest expense, net | (33,850) | (30,945) | (67,956) | (62,422) | | Investment loss, net | — | — | — | (1,718) | | Other income, net | 3,133 | 2,585 | 6,483 | 7,571 | | Income before income taxes | $48,567 | $75,900 | $82,732 | $130,817 | (a)Includes corporate overhead costs, such as employee compensation and related benefits. (18) New Accounting Standards Measurement of Credit Losses for Accounts Receivable and Contract Assets In July 2025, the Financial Accounting Standards Board (“FASB”) issued an amendment to provide a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets for revenue arising from contracts with customers. The Company adopted this amendment during the first quarter of 2026 and has elected the practical expedient to assume that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the receivables when estimating expected credit losses. The adoption of this amendment did not have a material impact on our condensed consolidated financial statements. ## Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. Introduction This “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us,” or “our”) should be read in conjunction with the accompanying unaudited condensed consolidated financial statements and the related notes included elsewhere within this report and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the fiscal year ended December 28, 2025 (the “Form 10-K”). There have been no material changes as of June 28, 2026 to the application of our critical accounting policies as described in Item 7 of the Form 10-K. Certain statements we make under this Item 2 constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. See “Special Note Regarding Forward-Looking Statements and Projections” in “Part II. Other Information” of this report. You should consider our forward-looking statements in light of the risks discussed in “Item 1A. Risk Factors” in “Part II. Other Information” of this report and our unaudited condensed consolidated financial statements, related notes and other financial information appearing elsewhere in this report, the Form 10-K and our other filings with the Securities and Exchange Commission (the “SEC”). The Wendy’s Company is the parent company of its 100% owned subsidiary holding company, Wendy’s Restaurants, LLC (“Wendy’s Restaurants”). Wendy’s Restaurants is the parent company of Wendy’s International, LLC (formerly known as Wendy’s International, Inc). Wendy’s International, LLC is the indirect parent company of (1) Quality Is Our Recipe, LLC (“Quality”), which is the owner and franchisor of the Wendy’s restaurant system in the United States (the “U.S.”) and all international jurisdictions except for Canada, and (2) Wendy’s Restaurants of Canada Inc., which is the owner and franchisor of the Wendy’s restaurant system in Canada. As used herein, unless the context requires otherwise, the term “Company” refers to The Wendy’s Company and its direct and indirect subsidiaries, and “Wendy’s” refers to Quality when the context relates to the ownership or franchising of the Wendy’s restaurant system and to Wendy’s International, LLC when the context refers to the Wendy’s brand. Wendy’s is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving high quality food. Wendy’s opened its first restaurant in Columbus, Ohio in 1969. Today, Wendy’s is one of the largest quick-service restaurant companies in the hamburger sandwich segment in the U.S. based on traffic and dollar share, and the third largest globally with 7,180 restaurants in the U.S. and 38 foreign countries and U.S. territories as of June 28, 2026. Each Wendy’s restaurant offers an extensive menu specializing in hamburger sandwiches and featuring chicken sandwiches, which are prepared to order with the customer’s choice of toppings and condiments. Wendy’s menu also includes chicken tenders and nuggets, chili, french fries, baked potatoes, salads, soft drinks, Frosty® desserts and kids’ meals. In addition, Wendy’s restaurants sell a variety of promotional products on a limited time basis. Wendy’s also offers breakfast in the U.S. and Canada. Wendy’s breakfast menu features a variety of breakfast sandwiches such as the Breakfast Baconator® and sides such as seasoned potatoes. The Company is comprised of the following segments: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development. Wendy’s U.S. includes the operation and franchising of Wendy’s restaurants in the U.S. and derives its revenues from sales at Company-operated restaurants and royalties, fees and advertising fund collections from franchised restaurants. Wendy’s International includes the operation and franchising of Wendy’s restaurants in countries and territories other than the U.S. and derives its revenues from sales at Company-operated restaurants and royalties, fees and advertising fund collections from franchised restaurants. Global Real Estate & Development includes real estate activity for owned sites and sites leased from third parties, which are leased and/or subleased to franchisees, and also includes our share of the income of our TimWen real estate joint venture. In addition, Global Real Estate & Development earns fees from facilitating franchisee-to-franchisee restaurant transfers (“Franchise Flips”) and providing other development-related services to franchisees. In this “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations,” the Company reports on the segment profit for each of the three segments described above. The Company measures segment profit using segment adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”). Segment adjusted EBITDA excludes certain unallocated general and administrative expenses and other items that vary from period to period without correlation to the Company’s core operating performance. See “Results of Operations” below and Note 17 to the Condensed Consolidated Financial Statements contained in Item 1 herein for segment financial information. The Company’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. All three- and six-month periods presented herein contain 13 weeks and 26 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Executive Overview Our Business As of June 28, 2026, the Wendy’s restaurant system was comprised of 7,180 restaurants, with 5,724 Wendy’s restaurants in operation in the U.S. Of the U.S. restaurants, 420 were operated by the Company and 5,304 were operated by a total of 206 franchisees. In addition, at June 28, 2026, there were 1,456 Wendy’s restaurants in operation in 38 foreign countries and U.S. territories. Of the international restaurants, 1,446 were operated by a total of 116 franchisees and 10 were operated by the Company in the United Kingdom (the “U.K.”). The revenues from our restaurant business are derived from two principal sources: (1) sales at Company-operated restaurants and (2) franchise-related revenues, including royalties, national advertising funds contributions, rents and franchise fees received from Wendy’s franchised restaurants. Wendy’s operating results are impacted by a number of external factors, including commodity costs, labor costs, intense price competition, unemployment and consumer spending levels, general economic and market trends and weather. While it evaluates its strategy, the Company is taking action across five areas: rebuilding a quality menu at compelling value, marketing that drives demand, operational excellence, a digital experience that builds frequency and restaurants as an engine for growth. During the second quarter of 2026, the Company learned that its franchise partner in China had experienced leadership changes and the parties amended the previously disclosed franchise agreement to provide for a termination right for either party without liability prior to December 12, 2026. Key Business Measures We track our results of operations and manage our business using the following key business measures: - Same-Restaurant Sales – We report same-restaurant sales commencing after new restaurants have been open for 15 continuous months and as soon as reimaged restaurants reopen. Restaurants temporarily closed for more than one week are excluded from same-restaurant sales. This methodology is consistent with the metric used by our management for internal reporting and analysis. The table summarizing same-restaurant sales below in “Results of Operations” provides the same-restaurant sales percent changes. - Company-Operated Restaurant Margin – We define Company-operated restaurant margin as sales from Company-operated restaurants less cost of sales divided by sales from Company-operated restaurants. Cost of sales includes food and paper, restaurant labor and occupancy, advertising and other operating costs. Cost of sales excludes certain costs that support restaurant operations that are not allocated to individual restaurants, which are included in “General and administrative.” Cost of sales also excludes depreciation and amortization expense and impairment of long-lived assets. Therefore, as Company-operated restaurant margin as presented excludes certain costs as described above, its usefulness may be limited and may not be comparable to other similarly titled measures of other companies in our industry. Company-operated restaurant margin is influenced by factors such as menu prices, the effectiveness of our advertising and marketing initiatives, featured products, product mix, fluctuations in food and labor costs, restaurant openings, remodels and closures and the level of our fixed and semi-variable costs. - Systemwide Sales – Systemwide sales includes sales by both Company-operated restaurants and franchised restaurants. Franchised restaurants’ sales are reported by our franchisees and represent their revenues from sales at franchised Wendy’s restaurants. The Company’s condensed consolidated financial statements do not include sales by franchised restaurants to their customers. The Company’s royalty and advertising funds revenues are computed as percentages of sales made by Wendy’s franchisees. As a result, sales by Wendy’s franchisees have a direct effect on the Company’s royalty and advertising funds revenues and profitability. The Company calculates same-restaurant sales and systemwide sales growth on a constant currency basis. Constant currency results exclude the impact of foreign currency translation and are derived by translating current year results at prior year average exchange rates. The Company believes excluding the impact of foreign currency translation provides better year over year comparability. Same-restaurant sales and systemwide sales exclude sales from Argentina due to that country’s highly inflationary economy. The Company considers economies that have had cumulative inflation in excess of 100% over a three-year period as highly inflationary. The Company believes its presentation of same-restaurant sales, Company-operated restaurant margin and systemwide sales provide a meaningful perspective of the underlying operating performance of the Company’s current business and enables investors to better understand and evaluate the Company’s historical and prospective operating performance. The Company believes that these metrics are important supplemental measures of operating performance because they highlight trends in the Company’s business that may not otherwise be apparent when relying solely on our condensed consolidated financial statements. The Company believes investors, analysts and other interested parties use these metrics in evaluating issuers and that the presentation of these measures facilitates a comparative assessment of the Company’s operating performance. With respect to same-restaurant sales and systemwide sales, the Company also believes that the data is useful in assessing consumer demand for the Company’s products and the overall success of the Wendy’s brand. Second Quarter Highlights - Global systemwide sales were $3.42 billion in the second quarter of 2026 compared with $3.66 billion in the second quarter of 2025, a decrease of 6.5% on a constant currency basis; - International systemwide sales were $546.7 million in the second quarter of 2026 compared with $528.9 million in the second quarter of 2025, an increase of 3.4% on a constant currency basis; - Revenues increased 1.7% to $570.6 million in the second quarter of 2026 compared with $560.9 million in the second quarter of 2025; - Global same-restaurant sales decreased 6.3%, U.S. same-restaurant sales decreased 7.0% and international same-restaurant sales decreased 2.3% compared with the second quarter of 2025; - Global Company-operated restaurant margin was 13.6% in the second quarter of 2026, a decrease of 200 basis points compared with the second quarter of 2025; - Income before income taxes decreased 36.0% to $48.6 million in the second quarter of 2026 compared with $75.9 million in the second quarter of 2025; - Digital sales increased to approximately 23.7% of global systemwide sales in the second quarter of 2026 compared with approximately 20.5% in the second quarter of 2025; and - Systemwide restaurant count decreased by 71 net restaurants in the second quarter of 2026. Year-to-Date Highlights - Global systemwide sales were $6.64 billion in the first six months of 2026 compared with $7.05 billion in the first six months of 2025, a decrease of 6.0% on a constant currency basis; - International systemwide sales were $1.06 billion in the first six months of 2026 compared with $1.00 billion in the first six months of 2025, an increase of 4.6% on a constant currency basis; - Revenues increased 2.5% to $1.11 billion in the first six months of 2026 compared with $1.08 billion in the first six months of 2025; - Global same-restaurant sales decreased 6.5%, U.S. same-restaurant sales decreased 7.4% and international same-restaurant sales decreased 1.4% compared with the first six months of 2025; - Global Company-operated restaurant margin was 12.3% in the first six months of 2026, a decrease of 270 basis points compared with the first six months of 2025; - Income before income taxes decreased 36.8% to $82.7 million in the first six months of 2026 compared with $130.8 million in the first six months of 2025; - Digital sales increased to approximately 23.6% of global systemwide sales in the first six months of 2026 compared with approximately 20.4% in the first six months of 2025; and - Systemwide restaurant count decreased by 217 net restaurants in the first six months of 2026. Results of Operations The tables included throughout this Results of Operations section set forth in millions the Company’s condensed consolidated results of operations for the second quarter and the first six months of 2026 and 2025. | Line item | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Revenues: | | | | | | | | Sales | $240.0 | $232.9 | $7.1 | $465.5 | $452.4 | $13.1 | | Franchise royalty revenue and fees | 149.8 | 156.2 | (6.4) | 297.6 | 301.4 | (3.8) | | Franchise rental income | 53.4 | 60.4 | (7.0) | 112.3 | 118.9 | (6.6) | | Advertising funds revenue | 127.4 | 111.4 | 16.0 | 235.8 | 211.7 | 24.1 | | | 570.6 | 560.9 | 9.7 | 1,111.2 | 1,084.4 | 26.8 | | Costs and expenses: | | | | | | | | Cost of sales | 207.3 | 196.5 | 10.8 | 408.3 | 384.7 | 23.6 | | Franchise support and other costs | 22.6 | 17.1 | 5.5 | 44.6 | 33.7 | 10.9 | | Franchise rental expense | 28.0 | 32.6 | (4.6) | 58.2 | 63.3 | (5.1) | | Advertising funds expense | 127.9 | 111.4 | 16.5 | 236.5 | 212.9 | 23.6 | | General and administrative | 66.2 | 59.5 | 6.7 | 139.0 | 127.7 | 11.3 | | Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 38.1 | 37.0 | 1.1 | 78.6 | 73.5 | 5.1 | | Amortization of cloud computing arrangements | 4.6 | 4.1 | 0.5 | 9.3 | 8.2 | 1.1 | | System optimization gains, net | (0.7) | (0.4) | (0.3) | (2.3) | (0.3) | (2.0) | | Reorganization and realignment costs | — | 0.2 | (0.2) | (0.2) | (0.5) | 0.3 | | Impairment of long-lived assets | 3.1 | 1.7 | 1.4 | 5.7 | 3.1 | 2.6 | | Other operating income, net | (5.8) | (3.1) | (2.7) | (10.7) | (9.3) | (1.4) | | | 491.3 | 456.6 | 34.7 | 967.0 | 897.0 | 70.0 | | Operating profit | 79.3 | 104.3 | (25.0) | 144.2 | 187.4 | (43.2) | | Interest expense, net | (33.9) | (30.9) | (3.0) | (68.0) | (62.4) | (5.6) | | Investment loss, net | — | — | — | — | (1.7) | 1.7 | | Other income, net | 3.2 | 2.5 | 0.7 | 6.5 | 7.5 | (1.0) | | Income before income taxes | 48.6 | 75.9 | (27.3) | 82.7 | 130.8 | (48.1) | | Provision for income taxes | (16.0) | (20.8) | 4.8 | (27.4) | (36.5) | 9.1 | | Net income | $32.6 | $55.1 | $(22.5) | $55.3 | $94.3 | $(39.0) | | Line item | Second Quarter / 2026 | Second Quarter / % of Total Revenues | Second Quarter / 2025 | Second Quarter / % of Total Revenues | Six Months / 2026 | Six Months / % of Total Revenues | Six Months / 2025 | Six Months / % of Total Revenues | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Revenues: | | | | | | | | | | Sales | $240.0 | 42.1% | $232.9 | 41.5% | $465.5 | 41.9% | $452.4 | 41.7% | | Franchise royalty revenue and fees: | | | | | | | | | | Franchise royalty revenue | 123.6 | 21.7% | 132.1 | 23.6% | 239.8 | 21.6% | 253.9 | 23.4% | | Franchise fees | 26.2 | 4.5% | 24.1 | 4.3% | 57.8 | 5.2% | 47.5 | 4.4% | | Total franchise royalty revenue and fees | 149.8 | 26.2% | 156.2 | 27.8% | 297.6 | 26.8% | 301.4 | 27.8% | | Franchise rental income | 53.4 | 9.4% | 60.4 | 10.8% | 112.3 | 10.1% | 118.9 | 11.0% | | Advertising funds revenue | 127.4 | 22.3% | 111.4 | 19.9% | 235.8 | 21.2% | 211.7 | 19.5% | | Total revenues | $570.6 | 100.0% | $560.9 | 100.0% | $1,111.2 | 100.0% | $1,084.4 | 100.0% | | | Second Quarter | | | | Six Months | | | | | | 2026 | % of Sales | 2025 | % of Sales | 2026 | % of Sales | 2025 | % of Sales | | Cost of sales: | | | | | | | | | | Food and paper | $75.3 | 31.4% | $72.7 | 31.2% | $145.9 | 31.3% | $140.4 | 31.0% | | Restaurant labor | 77.0 | 32.1% | 73.4 | 31.5% | 152.4 | 32.7% | 144.2 | 31.9% | | Occupancy, advertising and other operating costs | 55.0 | 22.9% | 50.4 | 21.7% | 110.0 | 23.7% | 100.1 | 22.1% | | Total cost of sales | $207.3 | 86.4% | $196.5 | 84.4% | $408.3 | 87.7% | $384.7 | 85.0% | | Line item | Second Quarter / 2026 | Second Quarter / % of Sales | Second Quarter / 2025 | Second Quarter / % of Sales | Six Months / 2026 | Six Months / % of Sales | Six Months / 2025 | Six Months / % of Sales | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | Company-operated restaurant margin: | | | | | | | | | | U.S. | $32.4 | 13.8% | $36.7 | 16.2% | $57.4 | 12.7% | $68.2 | 15.6% | | Global | 32.7 | 13.6% | 36.3 | 15.6% | 57.2 | 12.3% | 67.7 | 15.0% | The table below presents certain of the Company’s key business measures, which are defined and further discussed in the “Executive Overview” section included herein. | Line item | Second Quarter / 2026 | Second Quarter / 2025 | Six Months / 2026 | Six Months / 2025 | | --- | --- | --- | --- | --- | | Key business measures: | | | | | | U.S. same-restaurant sales: | | | | | | Company-operated | (4.2)% | (0.7)% | (4.5)% | (0.9)% | | Franchised | (7.2)% | (3.8)% | (7.6)% | (3.4)% | | Systemwide | (7.0)% | (3.6)% | (7.4)% | (3.2)% | | International same-restaurant sales (a) | (2.3)% | 1.8% | (1.4)% | 2.1% | | Global same-restaurant sales: | | | | | | Company-operated | (4.3)% | (0.8)% | (4.5)% | (1.0)% | | Franchised (a) | (6.4)% | (3.0)% | (6.7)% | (2.6)% | | Systemwide (a) | (6.3)% | (2.9)% | (6.5)% | (2.5)% | | Systemwide sales (b): | | | | | | U.S. Company-operated | $234.0 | $226.0 | $453.3 | $438.7 | | U.S. franchised | 2,641.8 | 2,905.3 | 5,125.4 | 5,608.7 | | U.S. systemwide | 2,875.8 | 3,131.3 | 5,578.7 | 6,047.4 | | International Company-operated | 6.0 | 6.9 | 12.2 | 13.6 | | International franchised (a) | 540.7 | 522.0 | 1,052.5 | 988.5 | | International systemwide (a) | 546.7 | 528.9 | 1,064.7 | 1,002.1 | | Global systemwide (a) | $3,422.5 | $3,660.2 | $6,643.4 | $7,049.5 | (a)Excludes Argentina due to the impact of that country’s highly inflationary economy. (b)During the second quarter of 2026 and 2025, global systemwide sales decreased 6.5% and 1.8%, respectively, U.S. systemwide sales decreased 8.2% and 3.3%, respectively, and international systemwide sales increased 3.4% and 8.7%, respectively, on a constant currency basis. During the first six months of 2026 and 2025, global systemwide sales decreased 6.0% and 1.4%, respectively, U.S. systemwide sales decreased 7.7% and 3.0%, respectively, and international systemwide sales increased 4.6% and 8.8%, respectively, on a constant currency basis. | Line item | Second Quarter / U.S. Company-operated | Second Quarter / U.S. Franchised | Second Quarter / International Company-operated | Second Quarter / International Franchised | Second Quarter / Systemwide | | --- | --- | --- | --- | --- | --- | | Restaurant count: | | | | | | | Restaurant count at March 29, 2026 | 420 | 5,385 | 11 | 1,435 | 7,251 | | Opened | 1 | 20 | — | 27 | 48 | | Closed | — | (102) | (1) | (16) | (119) | | Net (sold to) purchased by franchisees | (1) | 1 | — | — | — | | Restaurant count at June 28, 2026 | 420 | 5,304 | 10 | 1,446 | 7,180 | | | Six Months | | | | | | | U.S. Company-operated | U.S. Franchised | International Company-operated | International Franchised | Systemwide | | Restaurant count at December 28, 2025 | 423 | 5,546 | 11 | 1,417 | 7,397 | | Opened | 4 | 40 | — | 54 | 98 | | Closed | (3) | (286) | (1) | (25) | (315) | | Net (sold to) purchased by franchisees | (4) | 4 | — | — | — | | Restaurant count at June 28, 2026 | 420 | 5,304 | 10 | 1,446 | 7,180 | | Sales | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Sales | $240.0 | $232.9 | $7.1 | $465.5 | $452.4 | $13.1 | The increase in sales during the second quarter and the first six months of 2026 was primarily due to (1) the impact of the Company’s acquisition of franchise-operated restaurants during the third quarter of 2025 of $15.8 million and $29.4 million, respectively, and (2) net new restaurant development of $2.9 million and $5.9 million, respectively. During the second quarter and the first six months of 2026, these impacts were partially offset by (1) a 4.3% and 4.5% decrease in global Company-operated same-restaurant sales of $9.2 million and $18.6 million, respectively, and (2) the impact of the sale of Company-operated restaurants to franchisees of $3.2 million and $5.2 million, respectively. Company-operated same-restaurant sales during the second quarter and the first six months of 2026 decreased due to a decrease in traffic, partially offset by higher average check. | Franchise Royalty Revenue and Fees | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Franchise royalty revenue | $123.6 | $132.1 | $(8.5) | $239.8 | $253.9 | $(14.1) | | Franchise fees | 26.2 | 24.1 | 2.1 | 57.8 | 47.5 | 10.3 | | | $149.8 | $156.2 | $(6.4) | $297.6 | $301.4 | $(3.8) | Franchise royalty revenue during the second quarter and the first six months of 2026 decreased primarily due to a 6.4% and 6.7% decrease in global franchise same-restaurant sales, respectively. Franchise same-restaurant sales during the second quarter and the first six months of 2026 decreased due to a decrease in traffic, partially offset by higher average check. The increase in franchise fees during the second quarter and the first six months of 2026 was primarily due to the impact of system optimization related to restaurant closures and hours of operation flexibility. | Franchise Rental Income | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Franchise rental income | $53.4 | $60.4 | $(7.0) | $112.3 | $118.9 | $(6.6) | The decrease in franchise rental income during the second quarter and the first six months of 2026 was primarily due to (1) the impact of assigning certain existing leases to franchisees of $5.3 million and $6.1 million, respectively, and (2) amending certain existing leases during the second quarter of 2026 of $1.0 million. During the second quarter and the first six months of 2026, these changes were partially offset by entering into new leases of $0.5 million and $1.2 million, respectively. | Advertising Funds Revenue | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Advertising funds revenue | $127.4 | $111.4 | $16.0 | $235.8 | $211.7 | $24.1 | The increase in advertising funds revenue during the second quarter and the first six months of 2026 was primarily due to (1) local and regional advertising funds being reallocated to U.S. national advertising of approximately $16.0 million and $30.0 million, respectively, and (2) non-recurring incentives earned from a vendor during the second quarter of 2026 of $11.5 million. During the second quarter and the first six months of 2026, these increases were partially offset by a decrease in franchise same-restaurant sales of approximately $9.0 million and $16.0 million, respectively. | Cost of Sales, as a Percent of Sales | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Food and paper | 31.4% | 31.2% | 0.2% | 31.3% | 31.0% | 0.3% | | Restaurant labor | 32.1% | 31.5% | 0.6% | 32.7% | 31.9% | 0.8% | | Occupancy, advertising and other operating costs | 22.9% | 21.7% | 1.2% | 23.7% | 22.1% | 1.6% | | | 86.4% | 84.4% | 2.0% | 87.7% | 85.0% | 2.7% | The increase in cost of sales, as a percent of sales, during the second quarter and the first six months of 2026 was primarily due to (1) a decrease in traffic, (2) higher commodity costs and (3) an increase in restaurant labor rates. These changes were partially offset by (1) higher average check and (2) labor efficiencies. | Franchise Support and Other Costs | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Franchise support and other costs | $22.6 | $17.1 | $5.5 | $44.6 | $33.7 | $10.9 | The increase in franchise support and other costs during the second quarter and the first six months of 2026 was primarily due to an increase in the provision for doubtful accounts. | Franchise Rental Expense | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Franchise rental expense | $28.0 | $32.6 | $(4.6) | $58.2 | $63.3 | $(5.1) | The decrease in franchise rental expense during the second quarter and the first six months of 2026 was primarily due to (1) the impact of assigning certain leases to franchisees, (2) amending certain existing leases and (3) lease terminations. | Advertising Funds Expense | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Advertising funds expense | $127.9 | $111.4 | $16.5 | $236.5 | $212.9 | $23.6 | On an interim basis, advertising funds expense is recognized in proportion to advertising funds revenue. The increase in advertising funds expense during the second quarter and the first six months of 2026 was primarily due to the same factors as described above for “Advertising Funds Revenue.” | General and Administrative | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Professional fees | $19.3 | $13.9 | $5.4 | $34.9 | $28.0 | $6.9 | | Employee compensation and benefits | 39.0 | 36.5 | 2.5 | 79.4 | 75.0 | 4.4 | | Other, net | 7.9 | 9.1 | (1.2) | 24.7 | 24.7 | — | | | $66.2 | $59.5 | $6.7 | $139.0 | $127.7 | $11.3 | The increase in general and administrative expenses during the second quarter and the first six months of 2026 was primarily due to investments in (1) professional services and (2) employee compensation and benefits. | Depreciation and Amortization (exclusive of amortization of cloud computing arrangements shown separately below) | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Restaurants | $19.1 | $18.1 | $1.0 | $40.1 | $35.8 | $4.3 | | Finance lease assets | 5.4 | 4.9 | 0.5 | 11.1 | 10.0 | 1.1 | | Technology support, corporate and other | 13.6 | 14.0 | (0.4) | 27.4 | 27.7 | (0.3) | | | $38.1 | $37.0 | $1.1 | $78.6 | $73.5 | $5.1 | The increase in depreciation and amortization during the second quarter and the first six months of 2026 was primarily due to (1) depreciation and amortization on restaurant assets acquired from a franchisee during the third quarter of 2025 and (2) asset additions for new and remodeled restaurants. | Amortization of Cloud Computing Arrangements | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Amortization of cloud computing arrangements | $4.6 | $4.1 | $0.5 | $9.3 | $8.2 | $1.1 | The increase in amortization of cloud computing arrangements during the second quarter and the first six months of 2026 was primarily due to amortization of assets associated with the Company’s digital investments. | System Optimization Gains, Net | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | System optimization gains, net | $0.7 | $0.4 | $0.3 | $2.3 | $0.3 | $2.0 | System optimization gains, net during the second quarter and the first six months of 2026 were primarily comprised of gains on the sale of surplus and other properties. See Note 10 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further discussion. | Reorganization and Realignment Costs | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Organizational Redesign Plan | — | $0.1 | $(0.1) | $(0.2) | $(0.8) | $0.6 | | Other reorganization and realignment plans | — | 0.1 | (0.1) | — | 0.3 | (0.3) | | | — | $0.2 | $(0.2) | $(0.2) | $(0.5) | $0.3 | During the first six months of 2026 and 2025, the Company recognized costs under the Organizational Redesign Plan of $(0.2) million and $(0.8) million, respectively, which primarily included reversals of severance accruals resulting from changes in estimates. See Note 11 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information on the Organizational Redesign Plan. | Impairment of Long-Lived Assets | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Impairment of long-lived assets | $3.1 | $1.7 | $1.4 | $5.7 | $3.1 | $2.6 | The increase in impairment of long-lived assets during the second quarter was primarily due to higher impairment charges resulting from the deterioration in operating performance of certain Company-operated restaurants. The increase in impairment of long-lived assets during the first six months of 2026 was primarily due to (1) losses from the remeasurement to fair value of assets leased and/or subleased to franchisees in connection with the closure of franchise-operated restaurants and (2) higher impairment charges resulting from the deterioration in operating performance of certain Company-operated restaurants. | Other Operating Income, Net | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Claim settlement | — | — | — | — | $4.0 | $(4.0) | | Lease buyout | 2.4 | (0.1) | 2.5 | 3.3 | 0.1 | 3.2 | | Gains on sales-type leases | 0.2 | — | 0.2 | 2.1 | — | 2.1 | | Other, net | 3.2 | 3.2 | — | 5.3 | 5.2 | 0.1 | | | $5.8 | $3.1 | $2.7 | $10.7 | $9.3 | $1.4 | The increase in other operating income, net during the second quarter of 2026 was primarily due to an increase in lease buyout activity. The increase in other operating income, net during the first six months of 2026 was primarily due to (1) an increase in lease buyout activity and (2) gains on new and modified sales-type leases. During the first six months of 2026, these increases were partially offset by the settlement of a claim during the prior year. | Interest Expense, Net | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Interest expense, net | $33.9 | $30.9 | $3.0 | $68.0 | $62.4 | $5.6 | The increase in interest expense, net during the second quarter and the first six months of 2026 was primarily due to the impact of completing the refinancing of a portion of the Company’s securitized financing facility in the fourth quarter of 2025. | Investment Loss, Net | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Investment loss, net | — | — | — | — | $1.7 | $(1.7) | During the first six months of 2025, the Company recorded a loss of $1.7 million due to impairment charges for the difference between the estimated fair value and the carrying value of an investment in equity securities. | Other Income, Net | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Other income, net | $3.2 | $2.5 | $0.7 | $6.5 | $7.5 | $(1.0) | The increase in other income, net during the second quarter of 2026 was primarily due to an increase in interest income, reflecting (1) interest earned on accounts receivable from a franchisee and (2) interest income related to a tax refund. The decrease in other income, net during the first six months of 2026 was primarily due to a decrease in interest income, reflecting (1) lower interest rates and (2) lower balances of cash equivalents. These decreases were partially offset by interest earned on accounts receivable from a franchisee. | Provision for Income Taxes | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Income before income taxes | $48.6 | $75.9 | $(27.3) | $82.7 | $130.8 | $(48.1) | | Provision for income taxes | (16.0) | (20.8) | 4.8 | (27.4) | (36.5) | 9.1 | | Effective tax rate on income | 32.8% | 27.4% | 5.4% | 33.1% | 27.9% | 5.2% | The increase in the effective tax rate for the second quarter and the first six months of 2026 was primarily due to the tax effects of our foreign operations and lower income before income taxes. Segment Information See Note 17 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information regarding the Company’s segments. Wendy’s U.S. | Line item | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Sales | $234.0 | $226.0 | $8.0 | $453.3 | $438.7 | $14.6 | | Franchise royalty revenue | 103.7 | 112.8 | (9.1) | 201.1 | 217.2 | (16.1) | | Franchise fees | 22.2 | 20.9 | 1.3 | 50.4 | 41.8 | 8.6 | | Advertising fund revenue | 117.7 | 101.4 | 16.3 | 217.0 | 193.1 | 23.9 | | Total revenues | $477.6 | $461.1 | $16.5 | $921.8 | $890.8 | $31.0 | | Segment profit | $120.5 | $137.2 | $(16.7) | $230.3 | $258.1 | $(27.8) | The increase in Wendy’s U.S. revenues during the second quarter and the first six months of 2026 was primarily due to (1) higher advertising fund revenue, (2) the impact of the Company’s acquisition of 35 franchise-operated restaurants in the third quarter of 2025, and (3) an increase in franchise fees. These impacts were partially offset by a decrease in same-restaurant sales. Same-restaurant sales decreased during the second quarter and the first six months of 2026 primarily due to a decrease in traffic, partially offset by higher average check. The decrease in Wendy’s U.S. segment profit during the second quarter and the first six months of 2026 was primarily due to (1) higher advertising fund expenses, (2) higher cost of sales, as a percent of sales, for Company-operated restaurants, driven by the same factors as described above for “Cost of Sales, as a Percent of Sales,” and (3) higher franchise support and other costs. These changes were partially offset by higher revenues. Wendy’s International | Line item | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Sales | $6.0 | $6.9 | $(0.9) | $12.2 | $13.6 | $(1.4) | | Franchise royalty revenue | 19.8 | 19.4 | 0.4 | 38.7 | 36.7 | 2.0 | | Franchise fees | 3.8 | 2.6 | 1.2 | 6.5 | 4.7 | 1.8 | | Advertising fund revenue | 9.7 | 10.0 | (0.3) | 18.8 | 18.6 | 0.2 | | Total revenues | $39.3 | $38.9 | $0.4 | $76.2 | $73.6 | $2.6 | | Segment profit | $11.9 | $13.2 | $(1.3) | $22.5 | $22.7 | $(0.2) | The increase in Wendy’s International revenues during the second quarter and the first six months of 2026 was primarily due to (1) an increase in franchise fees and (2) net new restaurant development. These impacts were partially offset by a decrease in same-restaurant sales. Same-restaurant sales decreased during the second quarter and the first six months of 2026 primarily due to a decrease in traffic, partially offset by higher average check. The decrease in Wendy’s International segment profit during the second quarter and the first six months of 2026 was primarily due to (1) an increase in franchise support and other costs and (2) higher general and administrative expenses. These impacts were partially offset by (1) higher revenues and (2) lower cost of sales, as a percent of sales, for Company-operated restaurants. Global Real Estate & Development | Line item | Second Quarter / 2026 | Second Quarter / 2025 | Second Quarter / Change | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | --- | --- | --- | | Franchise fees | $0.3 | $0.5 | $(0.2) | $1.0 | $1.2 | $(0.2) | | Franchise rental income | 53.4 | 60.4 | (7.0) | 112.3 | 118.9 | (6.6) | | Total revenues | $53.7 | $60.9 | $(7.2) | $113.3 | $120.1 | $(6.8) | | Segment profit | $27.5 | $27.3 | $0.2 | $55.5 | $52.0 | $3.5 | The decrease in Global Real Estate & Development revenues during the second quarter and the first six months of 2026 was primarily due to a decrease in franchise rental income, driven by the same factors as described above for “Franchise Rental Income.” The increase in Global Real Estate & Development segment profit during the second quarter and the first six months of 2026 was primarily due to (1) an increase in lease buyout activity and (2) entering into new leases. These changes were partially offset by the impact of assigning certain existing leases to franchisees. During the first six months of 2026, Global Real Estate & Development segment profit also increased due to gains on new and modified sales-type leases. Liquidity and Capital Resources As of June 28, 2026, cash, cash equivalents and restricted cash totaled $394.8 million. In addition, the Company maintains a revolving financing facility, which allows for the drawing of up to $300.0 million. Based on current levels of operations, the Company expects that available cash and cash flows from operations will provide sufficient liquidity to meet operating cash requirements for the next 12 months. We currently believe we have the ability to pursue additional sources of liquidity if needed or desired to fund operating cash requirements or for other purposes. However, there can be no assurance that additional liquidity will be readily available or available on terms acceptable to us. Stock Repurchases In January 2023, our Board of Directors authorized a repurchase program for up to $500.0 million of our common stock through February 28, 2027, when and if market conditions warrant and to the extent legally permissible (the “January 2023 Authorization”). During the six months ended June 28, 2026, no shares were repurchased under the January 2023 Authorization. As of June 28, 2026, the Company had $35.0 million of availability remaining under the January 2023 Authorization. Dividends On March 16, 2026 and June 15, 2026, the Company paid quarterly cash dividends per share of $.14, aggregating $53.3 million. On August 7, 2026, the Company announced a dividend of $.07 per share to be paid on September 15, 2026 to stockholders of record as of September 1, 2026. If the Company pays regular quarterly cash dividends for the remainder of 2026 at the same rate declared in the third quarter of 2026, the Company’s total cash requirement for dividends for the remainder of 2026 will be approximately $26.7 million based on the number of shares of its common stock outstanding at July 31, 2026. The Company currently intends to continue to declare and pay quarterly cash dividends; however, there can be no assurance that any additional quarterly dividends will be declared or paid or of the amount or timing of such dividends, if any. Long-Term Debt, Including Current Portion Wendy’s U.S. advertising fund has a revolving line of credit of $15.0 million, which was established to support the Company’s advertising fund operations. During the three months ended March 29, 2026, the Company borrowed and repaid $11.5 million under the revolving line of credit, then subsequently borrowed and repaid $3.6 million under the revolving line of credit. During the three months ended June 28, 2026, the Company borrowed and repaid $2.7 million under the revolving line of credit. As a result, as of June 28, 2026, the Company had no outstanding borrowings under the revolving line of credit. Subsequent to June 28, 2026, the Company increased the Wendy’s U.S. advertising fund revolving line of credit to $25.0 million. Except as described above, there were no material changes to the Company’s debt obligations since December 28, 2025. The Company was in compliance with its debt covenants as of June 28, 2026. See Note 5 to the Condensed Consolidated Financial Statements contained in Item 1 herein for further information related to our long-term debt obligations. Cash Flows from Operating, Investing and Financing Activities The table below summarizes our cash flows from operating, investing and financing activities for the first six months of 2026 and 2025: | Line item | Six Months / 2026 | Six Months / 2025 | Six Months / Change | | --- | --- | --- | --- | | Net cash provided by (used in): | | | | | Operating activities | $160.0 | $146.0 | $14.0 | | Investing activities | (37.8) | (52.3) | 14.5 | | Financing activities | (82.7) | (272.7) | 190.0 | | Effect of exchange rate changes on cash | (2.4) | 5.5 | (7.9) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $37.1 | $(173.5) | $210.6 | Operating Activities Cash provided by operating activities consists primarily of net income, adjusted for non-cash expenses such as depreciation and amortization, deferred income tax and share-based compensation, and the net change in operating assets and liabilities. Cash provided by operating activities was $160.0 million and $146.0 million in the first six months of 2026 and 2025, respectively. The change was primarily due to (1) a decrease in cash paid for income taxes and (2) the timing of payments for marketing expenses of the national advertising funds. These changes were partially offset by (1) lower net income, adjusted for non-cash expenses and (2) the timing of the collection of royalty receivables. Investing Activities Cash used in investing activities was $37.8 million and $52.3 million in the first six months of 2026 and 2025, respectively. The change was primarily due to (1) a decrease in capital expenditures of $7.6 million and (2) a decrease in expenditures associated with the Company’s franchise development fund of $5.5 million. Financing Activities Cash used in financing activities was $82.7 million and $272.7 million in the first six months of 2026 and 2025, respectively. The change was primarily due to (1) a decrease in repurchases of the Company’s common stock of $184.6 million and (2) a decrease in dividends of $22.9 million. These changes were partially offset by a net increase in cash used in long-term debt activities of $15.3 million, reflecting the impact of proceeds and repayments under the Company’s U.S. advertising fund revolving line of credit. General Inflation, Commodities and Changing Prices Inflationary pressures on labor and commodity price increases directly impacted our consolidated results of operations during the six months ended June 28, 2026, and we anticipate continued labor and commodity inflation throughout the remainder of 2026. We attempt to manage any inflationary costs and commodity price increases through selective menu price increases, product mix and focused execution of operational excellence. Delays in implementing such menu price increases and competitive pressures may limit our ability to recover such cost increases in the future. Inherent volatility experienced in certain commodity markets, such as those for beef, chicken, eggs, pork, dairy and grains, could have a significant effect on our results of operations and may have an adverse effect on us in the future. The extent of any impact will depend on our ability to manage such volatility through selective menu price increases, product mix and focused execution of operational excellence. Seasonality Wendy’s restaurant operations are moderately seasonal. Wendy’s average restaurant sales are normally higher during the summer months than during the winter months. Because our business is moderately seasonal, results for a particular quarter are not necessarily indicative of the results that may be achieved for any other quarter or for the full fiscal year. ## Item 3. Quantitative and Qualitative Disclosures about Market Risk. As of June 28, 2026 there were no material changes from the information contained in the Company’s Form 10-K for the fiscal year ended December 28, 2025. ## Item 4. Controls and Procedures. Evaluation of Disclosure Controls and Procedures The management of the Company, under the supervision and with the participation of the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of June 28, 2026. Based on such evaluations, the Chief Executive Officer and Chief Financial Officer concluded that as of June 28, 2026, the disclosure controls and procedures of the Company were effective at a reasonable assurance level in (1) recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and (2) ensuring that information required to be disclosed by the Company in such reports is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Changes in Internal Control Over Financial Reporting There were no changes in the internal control over financial reporting of the Company during the second quarter of 2026 that materially affected, or are reasonably likely to materially affect, its internal control over financial reporting. Inherent Limitations on Effectiveness of Controls There are inherent limitations in the effectiveness of any control system, including the potential for human error and the possible circumvention or overriding of controls and procedures. Additionally, judgments in decision-making can be faulty and breakdowns can occur because of a simple error or mistake. An effective control system can provide only reasonable, not absolute, assurance that the control objectives of the system are adequately met. Accordingly, the management of the Company, including its Chief Executive Officer and Chief Financial Officer, does not expect that the control system can prevent or detect all error or fraud. Finally, projections of any evaluation or assessment of effectiveness of a control system to future periods are subject to the risks that, over time, controls may become inadequate because of changes in an entity’s operating environment or deterioration in the degree of compliance with policies or procedures. PART II. OTHER INFORMATION Special Note Regarding Forward-Looking Statements and Projections This Quarterly Report on Form 10-Q and oral statements made from time to time by representatives of the Company may contain or incorporate by reference certain statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Reform Act”). Generally, forward-looking statements include the words “may,” “believes,” “plans,” “expects,” “anticipates,” “intends,” “estimate,” “goal,” “upcoming,” “annualized,” “outlook,” “guidance” or the negation thereof, or similar expressions. In addition, all statements that address future operating, financial or business performance, strategies or initiatives, future efficiencies or savings, anticipated costs or charges, future capitalization, anticipated impacts of recent or pending investments or transactions and statements expressing general views about future results or brand health are forward-looking statements within the meaning of the Reform Act. Forward-looking statements are based on our expectations at the time such statements are made, speak only as of the dates they are made and are susceptible to a number of risks, uncertainties and other factors. For all of our forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Reform Act. Our actual results, performance and achievements may differ materially from any future results, performance or achievements expressed or implied by our forward-looking statements. Many important factors could affect our future results and cause those results to differ materially from those expressed in or implied by our forward-looking statements. Such factors include, but are not limited to, the following: - the impact of competition or poor customer experiences at Wendy’s restaurants; - adverse economic conditions or volatility or disruptions, including in regions with a high concentration of Wendy’s restaurants; - changes in discretionary consumer spending and consumer tastes and preferences; - conditions beyond our control, such as adverse weather conditions, natural disasters, hostilities, social unrest, health epidemics or pandemics or other catastrophic events; - impacts to our corporate reputation or the value and perception of our brand; - the effectiveness of our marketing and advertising programs and new product development; - our ability to manage the impact of social or digital media; - our ability to protect our intellectual property; - food safety events or health concerns involving our products; - our ability to successfully implement important strategic initiatives, effectively managing or maintaining growth and market share across our dayparts or executing strategic transactions; - our ability to grow our business through new restaurant development; - our ability to effectively manage the acquisition and disposition of restaurants and other restaurant activity; - risks associated with leasing and owning significant amounts of real estate, including environmental matters; - risks associated with our international operations, including our ability to execute our international growth strategy; - changes in commodity and other operating costs; - shortages or interruptions in the supply or distribution of our products and other risks associated with our independent supply chain purchasing co-op; - the impact of increased labor costs or labor shortages; - the continued succession and retention of key personnel and the effectiveness of our leadership and organizational structure; - risks associated with our digital commerce strategy, platforms and technologies, including our ability to adapt to changes in industry trends and consumer preferences; - our and our franchisees’ dependence on computer systems and information technology, including risks associated with the failure or interruption of our systems or technology or the occurrence of cybersecurity incidents or deficiencies; - risks associated with our securitized financing facility and other debt agreements, including compliance with operational and financial covenants, restrictions on our ability to raise additional capital, the impact of our overall debt levels and our ability to generate sufficient cash flow to meet our debt service obligations and operate our business; - risks associated with our capital allocation policy, including the amount and timing of equity and debt repurchases and dividend payments; - risks associated with complaints and litigation, compliance with legal and regulatory requirements and a focus on corporate responsibility issues; - risks associated with the availability and cost of insurance, the recognition of impairment or other charges, changes in tax rates or tax laws and fluctuations in foreign currency exchange rates; - Trian Fund Management, L.P. and certain of its affiliates filed a Schedule 13D/A with the SEC on February 18, 2026 indicating, among other things, that they intend to explore and evaluate the possibility of participating, alone or with third parties, in certain potential transactions with respect to us to enhance stockholder value; there can be no assurance that (i) any such potential transactions will occur or result in additional value for our stockholders or (ii) that the exploration of potential transactions will not have an adverse impact on our business; and - other risks and uncertainties affecting us and our subsidiaries referred to in our Annual Report on Form 10-K filed with the SEC on February 23, 2026 (see especially “Item 1A. Risk Factors” and “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations”) and in our other current and periodic filings with the SEC. In addition to the factors described above, there are risks associated with our predominantly franchised business model that could impact our results, performance and achievements. Such risks include our ability to identify, attract and retain experienced and qualified franchisees, our ability to effectively manage the transfer of restaurants between and among franchisees, the business and financial health of franchisees, the ability of franchisees to meet their royalty, advertising, development, reimaging and other commitments, participation by franchisees in brand strategies and the fact that franchisees are independent third parties that own, operate and are responsible for overseeing the operations of their restaurants. Our predominantly franchised business model may also impact the ability of the Wendy’s system to effectively respond and adapt to market changes. All future written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and factors that we currently deem immaterial may become material, and it is impossible for us to predict these events or how they may affect us. We assume no obligation to update any forward-looking statements after the date of this Quarterly Report on Form 10-Q as a result of new information, future events or developments, except as required by federal securities laws, although we may do so from time to time. We do not endorse any projections regarding future performance that may be made by third parties. ## Item 1. Legal Proceedings. The Company is involved in litigation and claims incidental to our business. We provide accruals for such litigation and claims when we determine it is probable that a liability has been incurred and the loss is reasonably estimable. The Company believes it has adequate accruals for all of its legal and environmental matters. We cannot estimate the aggregate possible range of loss for our existing litigation and claims due to various reasons, including, but not limited to, many proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur, and significant factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently difficult and future developments could cause these actions or claims, individually or in aggregate, to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows of a particular reporting period. ## Item 1A. Risk Factors. In addition to the information contained in this report, you should carefully consider the risk factors disclosed in our Form 10-K, which could materially affect our business, financial condition or future results. Except as described elsewhere in this report, there have been no material changes from the risk factors previously disclosed in our Form 10-K. ## Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. The following table provides information with respect to repurchases of shares of our common stock by us and our “affiliated purchasers” (as defined in Rule 10b-18(a)(3) under the Exchange Act) during the second quarter of 2026: Issuer Repurchases of Equity Securities | Period | Total Number of Shares Purchased (1) | Average Price Paidper Share | Total Number of Shares Purchasedas Part of Publicly Announced Plans | Approximate Dollar Value of Sharesthat May Yet Be Purchased Underthe Plans (2) | | --- | --- | --- | --- | --- | | March 30, 2026throughMay 3, 2026 | 2,742 | $6.95 | — | $35,000,024 | | May 4, 2026throughMay 31, 2026 | 894 | $8.02 | — | $35,000,024 | | June 1, 2026throughJune 28, 2026 | — | $— | — | $35,000,024 | | Total | 3,636 | $7.21 | — | $35,000,024 | (1) Represents shares of common stock reacquired by the Company from holders of share-based awards to satisfy certain requirements associated with the vesting or exercise of the respective award. The shares were valued at the fair market value of the Company’s common stock on the vesting or exercise date of such awards, as set forth in the applicable plan document. (2) In January 2023, our Board of Directors authorized a repurchase program for up to $500.0 million of our common stock through February 28, 2027, when and if market conditions warrant and to the extent legally permissible. ## Item 6. Exhibits. | EXHIBIT NO. | DESCRIPTION | | --- | --- | | 10.1 | Employment Letter between The Wendy’s Company and Robert D. Wright dated as of May 17, 2026.* ** | | 10.2 | Employment Letter between The Wendy’s Company and Steven W. Cirulis dated as of June 19, 2026.* ** | | 10.3 | First Amendment to The Wendy’s Company 2020 Omnibus Award Plan, incorporated herein by reference to Exhibit 10.2 of the Registrant’s Current Report Form 8-K filed on May 22, 2026.** | | 10.4 | Form of Nonqualified Stock Option Award Agreement under The Wendy’s Company 2020 Omnibus Award Plan.* ** | | 10.5 | Form of Restricted Stock Unit Award Agreement under The Wendy’s Company 2020 Omnibus Award Plan (Ratable Vesting).* ** | | 10.6 | Form of Restricted Stock Unit Award Agreement under The Wendy’s Company 2020 Omnibus Award Plan (Cliff Vesting).* ** | | 31.1 | Certification of the Chief Executive Officer of The Wendy’s Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | | 31.2 | Certification of the Chief Financial Officer of The Wendy’s Company, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.* | | 32.1 | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | | 101 | The following financial information from The Wendy’s Company’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2026 formatted in Inline eXtensible Business Reporting Language: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. | | 104 | The cover page from The Wendy’s Company’s Quarterly Report on Form 10-Q for the quarter ended June 28, 2026, formatted in Inline XBRL and contained in Exhibit 101. | \* Filed herewith. \*\* Identifies a management contract or compensatory plan or arrangement. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE WENDY’S COMPANY (Registrant) Date: August 7, 2026 By: /s/ Steven W. Cirulis Steven W. Cirulis Chief Financial Officer and Chief Strategy Officer (On behalf of the registrant and as Principal Financial Officer) Date: August 7, 2026 By: /s/ Aaron M. Kale Aaron M. Kale Chief Accounting Officer and Vice President – Tax (Principal Accounting Officer) --- ## ROBERT D. WRIGHT EMPLOYMENT LETTER SEC source: [twc_ex101xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex101xq2-26.htm) EXHIBIT 10.1 May 17, 2026 Via Email Robert D. Wright Dear Robert: On behalf of The Wendy’s Company (“Wendy’s”, or the “Company”), I am delighted to confirm the offer of employment for the position of President and Chief Executive Officer, reporting directly to the Board of Directors (the “Board”). You will also be appointed as a member of the Board as of your start date, subject to reelection at the Company’s next annual meeting. We look forward to you joining the team on or before May 21, 2026, as mutually agreed by you and the Company. COMPENSATION AND BENEFITS. The following is a summary of your compensation and benefits, but it does not contain all the details. The complete understanding between the Company and you regarding your compensation and benefits is governed by the applicable plan documents and Company policies. If there is a discrepancy between the information in this letter and an applicable plan document or policy, the applicable plan document or policy will prevail. All forms of compensation and benefits referenced in this letter are subject to all applicable deductions and withholdings. Regardless of the amount withheld or reported, you are solely responsible for all taxes in respect of your compensation and benefits (including imputed compensation) except the employer’s share of employment taxes. 1.Location. You are expected to devote your full energy to the Company on a full-time basis; provided, however, that you shall be permitted to serve on one external public board, subject to prior written approval of the Chair of the Board or his designee (which will not be unreasonably withheld), and subject in all cases to such service not creating an actual or potential conflict of interest or interfering with your responsibilities or the performance of your duties to the Company. Your principal place of work will be the Company’s corporate headquarters, subject to periodic travel for business reasons. 2.Base Salary. Your starting base salary will be $1,000,000 per year, paid on a bi-weekly basis. Your base salary is subject to annual review by the Compensation and Human Capital Committee of the Board (the “CHC Committee”). Your base salary is intended to compensate you for all hours worked in a workweek. 3.Annual Incentive. You will be eligible to receive an annual incentive award under the terms and conditions of the incentive plan provided to senior executive officers of the Company. Your target award will be 175% of your annual base salary. Your actual award will be between 0% and 200% of target, as determined by the CHC Committee in its reasonable discretion based on its assessment of achievement of the performance measures determined by the CHC Committee in consultation with the senior leadership team. Any annual incentive award for your first year of employment will be prorated based on the number of full calendar months you are employed by the Company from your start date. 4.Benefits. You will be eligible to participate in the Company’s retirement, fringe benefit, and welfare benefit plans on the same terms as provided to other senior executives of the Company, including plans providing prescription, dental, disability, employee life, group life, accidental death and travel accident insurance benefits, each in accordance with and subject to the terms of the applicable plan. Subject to meeting the eligibility criteria, you will be eligible to participate in medical, dental, vision and life insurance programs after 30 days of service. The Company reserves the right to amend or terminate its benefit plans and programs at any time, subject to the terms thereof. To facilitate safe and efficient business travel for its executives, the Company owns fractional interests in corporate aircraft, in which you will be eligible to participate. Your spouse or other family members may accompany you on such aircraft, provided the aircraft is already scheduled to travel to a business-related destination and seating is available. 5.Executive Physical. Wendy’s wants to ensure that its leaders are provided with comprehensive health exams to help them maintain their health and peak performance. Wendy’s currently provides all officers of the Company with the opportunity to receive an executive physical and will cover up to $3,600 for an annual executive physical exam. 6.Annual Equity Awards. You will be eligible to receive awards under the Company’s annual long-term incentive award program, subject to approval by the Performance Compensation Subcommittee (the “Subcommittee”) and terms and conditions that are set forth in a plan document and award documents. The mix of awards will be determined by the Subcommittee. For 2026, your long-term incentive awards will have a target value of $6,000,000 (before pro-ration) and will consist of the following: a.60% will be in the form of performance share units (“PSUs”), to be granted as soon as practicable after your start date and pro-rated based on your start date; b.15% will be allocated to service-vesting restricted stock units (“RSUs”); and c.25% will be allocated to service-vesting stock options. Although RSUs and stock options are typically granted in August, your RSUs and stock options for 2026 will be granted on or as soon as practicable after your start date and will vest ratably over a three-year period, with one-third vesting on each anniversary of the earlier of (i) August 31, 2026 or (ii) the 2026 grant date for RSUs and stock options to the other members of the Company’s senior leadership team. Your RSUs and stock options for 2026 will not be pro-rated. Future awards will be determined in consideration of competitive market practices and individual performance and contributions, with the intent (subject to legal and other reasonable governance considerations) that the target value of your annual award will be no less than $6,000,000. 7.Severance. If the Company terminates your employment involuntarily without Cause, you will be eligible for severance in accordance with the Company’s Executive Severance Pay Policy in effect at such time (the “Severance Policy”), which currently provides base salary continuation for 24 months following termination (the “Continuation Period”), payment of the employer portion of COBRA premiums for up to 24 months following termination (as a taxable allowance that is added to your salary continuation), a pro rata payment of your annual cash incentive for the year of your termination, pro rata vesting of your outstanding stock options (with such vested options to remain exercisable for the period set forth in the Severance Policy), pro rata vesting of your outstanding RSUs, and pro rata vesting of your PSUs subject to actual performance for the full performance period. In each case, pro-ration will be determined based on completed months from the date of grant through your date of termination. If your involuntary termination without Cause occurs within 12 months following a Change in Control of the Company, the Severance Policy also currently provides that salary continuation will include your target annual incentive and provides for full (rather than pro rata) vesting of your outstanding options and RSUs; your PSUs would be treated as described in the applicable award agreement. All severance pay and benefits are conditioned on your timely executing, and not revoking, a separation and general release agreement in the form approved by the Company, including a general release of any and all claims concerning your employment and termination in favor of the Company (with standard carve-outs for your continued right to indemnification and your right to receive vested equity, benefits, and other compensation required by the terms of the applicable arrangements). You will not be entitled to severance in the event the Company terminates your employment for Cause or in the event you voluntarily resign or terminate your employment with the Company. More details, including applicable definitions, can be found in the Severance Policy. 8.Retirement. Equity awards granted to you will be eligible for retirement vesting in accordance with the terms of the Company’s annual long-term incentive award program and the applicable award agreement; provided, that you shall be deemed to meet any service-based criteria required for such eligibility if you have attained at least 6 years of service as President and Chief Executive Officer of the Company. 9.Attorneys’ Fees. The Company will reimburse or pay directly your reasonable attorneys’ fees incurred in the review and finalization of the term sheet and this letter, and related issues up to $25,000, subject to your presenting invoices (redacted as appropriate to preserve attorney-client privilege) and such other documentation as the Company reasonably requests within 30 days after you execute this letter. 10.Indemnification. To the fullest extent provided in the Company’s organizational documents (and subject to applicable law), the Company will indemnify you for any losses or damages incurred by you as a result of all causes of action arising from your performance of duties for the benefit of the Company; provided that this indemnity will not apply to any acts (or omissions) by you of willful misconduct, gross negligence, criminal behavior, or bad faith, or any other omission contemplated by the Company’s organizational documents or required by applicable law. You will be covered under the directors’ and officers’ insurance that the Company maintains for its directors and other officers, in the same manner and on the same basis as the Company’s directors and other officers. 11.Arbitration; Waiver of Trial by Jury; Class Actions. Any dispute or controversy arising under or in connection with this letter shall be settled exclusively by arbitration, conducted before a single neutral arbitrator in New York, NY, in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association (“AAA”) then in effect. If the parties are unable to agree upon an arbitrator, one shall be appointed by the AAA in accordance with its Rules for the Resolution of Employment Disputes. Discovery shall be conducted in accordance with the New York rules of civil procedure. You agree to waive any constitutional or other right to assert claims as a plaintiff or class member in any purported class or representative proceeding, unless otherwise prohibited by law. Judgment may be entered on the arbitration award in any court having jurisdiction; provided, however, that the Company shall be entitled to seek a restraining order or injunction in any court of competent jurisdiction to prevent any continuation of any violation of the provisions of this letter and you hereby consent that such restraining order or injunction may be granted without requiring the Company to post a bond. Unless we otherwise agree, only individuals who are on the AAA register of arbitrators shall be selected as an arbitrator. Within 20 days of the conclusion of the arbitration hearing, the arbitrator shall prepare written findings of fact and conclusions of law. It is mutually agreed that the written decision of the arbitrator shall be valid, binding, final, and enforceable by any court of competent jurisdiction. The parties shall equally share all administrative fees, and the fees and expenses of the arbitrator; provided that the arbitrator shall have authority to award fees and costs to the prevailing party, in accordance with applicable law. If in the opinion of the arbitrator there is no prevailing party, or the arbitrator does not elect to award fees and costs to the prevailing party, then each party shall pay its own attorney’s fees and expenses. YOU ACKNOWLEDGE THAT YOU HAVE BEEN GIVEN ADEQUATE TIME TO CONSIDER THIS AGREEMENT AND THE AAA RULES AND PROVISIONS REGARDING ARBITRATION OF CLAIMS AND HAVE HAD THE OPPORTUNITY TO DISCUSS THIS AGREEMENT WITH PRIVATE LEGAL COUNSEL. THE PARTIES HERETO FURTHER WAIVE THE RIGHT TO A TRIAL BY JURY OR CLASS ACTION TO THE MAXIMUM EXTENT PERMITTED BY LAW. 12.Section 409A. This letter (and all other compensation arrangements in respect of your employment) shall be construed consistently with the intent that all compensation comply with or be exempt from the requirements to avoid tax under Section 409A of the Internal Revenue Code of 1986, as amended and applicable regulations (the “Code”). For the avoidance of doubt, nothing in this letter shall be interpreted to transfer from you to the Company or any other party any tax liability, whether under Section 409A or otherwise. In accepting this offer, you agree to the attached Non-Compete and Confidentiality Addendum. This offer is contingent upon your ability to provide proof of your legal right to work in the United States within 72 hours of your start date. Further, by signing below, you represent that you: (i) are free to enter into an employment relationship with the Company and to perform the services required of you; (ii) have disclosed to the Company and made available (to the extent you are permitted to do so) copies of any agreement you may have with any third party (such as a former employer) which may limit your ability to work for the Company, or which otherwise could create a conflict of interest with the Company; and (iii) are not bound by any non-competition, non-disclosure, non-solicitation, or similar obligations that would interfere with your ability to perform your duties to the Company. Further, you understand that you are prohibited from using or disclosing any confidential information or materials, including trade secrets, of any former employer or other third party to whom you have an obligation of confidentiality and from violating any lawful agreement that you may have with any third party. By signing this letter, you agree to the Non-Compete and Confidentiality Addendum and you represent that you have and will comply with these requirements and that you are not in the possession of any confidential documents or other property of any former employer or other third party. We look forward to you becoming a part of the Wendy’s team and are confident that you can have a long-term, positive impact on our business. Nonetheless, please understand that Wendy’s is an at-will employer. That means that either you or Wendy’s are free to end the employment relationship at any time, with or without notice or Cause. Your at-will employment status, as well as any other terms in this letter, can only be modified through a written agreement signed by you and the Company. This offer letter, including all attachments, is governed by Ohio law, without regard to conflict of laws principles, and will be binding upon and enforceable by the Company’s successors and assigns, if applicable. Please review the information contained in this letter. Together with the Non-Compete and Confidentiality Addendum, this letter represents the complete understanding between you and the Company concerning the subject matter of this letter and supersedes all prior and contemporaneous term sheets, offers, agreements, understandings or communications between you and the Company (oral or written). You acknowledge that in accepting this offer you have not relied on any representation which is not set forth in this letter. Once you have had an opportunity to consider this letter, and provided you wish to accept the position on the terms outlined, please return an executed copy of this letter to me. I’m excited about the prospect of working with you on the Wendy’s leadership team. Should you have any questions, please do not hesitate to contact me. Yours truly, /s/ Arthur B. Winkleblack THE WENDY’S COMPANY Art Winkleblack Chairman of the Board Accepted and Agreed: /s/ Robert D. Wright Robert D. Wright May 17, 2026 Date NON-COMPETE AND CONFIDENTIALITY ADDENDUM TO OFFER LETTER OF ROBERT D. WRIGHT This Addendum is a part of the terms of your employment with Wendy’s. By accepting your offer letter, you are also accepting the terms of this Addendum. CONFIDENTIAL INFORMATION. You agree that, except as provided for herein, you will not at any time during your employment and anytime thereafter, divulge, furnish, or make known or accessible to, or use for the benefit of anyone other than Wendy’s, its subsidiaries, affiliates and their respective officers, directors and employees, any information of a confidential nature relating in any way to the business of Wendy’s or its subsidiaries or affiliates, or any of their respective franchisees, suppliers or distributors (“Confidential Information”). Notwithstanding any other provision of this Addendum to the contrary, pursuant to the Defend Trade Secrets Act of 2016, non-compliance with the disclosure provisions of this Addendum shall not subject you to criminal or civil liability under any federal or state trade secret law for the disclosure of a trade secret: (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If you file a lawsuit for retaliation by Wendy’s for reporting a suspected violation of law, you may disclose Wendy’s trade secrets to your attorney and use the trade secret information in the court proceeding if you (x) file any document containing the trade secret under seal; and (y) do not disclose the trade secret, except pursuant to court order. NO CONFLICTING AGREEMENT OR OBLIGATION. You represent that your performance of all the terms of this Addendum and as an employee of Wendy’s would not breach any agreement or obligation of any kind made prior to your employment by Wendy’s, including any noncompete agreement or any agreement to keep in confidence information acquired by you in confidence or in trust. You have not entered into, and you agree you will not enter into, any agreement either written or oral in conflict herewith. You further agree that you are not subject to any agreement that would restrict you from performing services to Wendy’s and that, as of your start date, you will not be in possession of any confidential information or material that is the property of a former employer or third party, and before and after your start date, you will not disclose to Wendy’s or use on its behalf, any confidential information or material that is the property of a former employer or third party. NONCOMPETE/NONSOLICITATION/EMPLOYEE NO-HIRE. You acknowledge that you will be involved, at the highest level, in the development, implementation, and management of Wendy’s business strategies and plans, including those which involve Wendy’s finances, marketing and other operations, and acquisitions and, as a result, you will have access to Wendy’s most valuable trade secrets and proprietary information. By virtue of your unique and sensitive position, your employment by a competitor of Wendy’s represents a material unfair competitive danger to Wendy’s and the use of your knowledge and information about Wendy’s business, strategies and plans can and would constitute a competitive advantage over Wendy’s. You agree that during your employment with Wendy’s and for twenty-four (24) months following termination of your employment for any reason, you will not, directly or indirectly, in your individual capacity for your own benefit or as a shareholder, lender, partner, member or other principal, officer, director, employee, agent or consultant of or to any individual, corporation, partnership, limited liability company, trust, association or any other entity whatsoever: (i) in any state or territory of the United States (including the District of Columbia) or any country where Wendy’s maintains, or at the time of your termination, plans to maintain, restaurants, engage or be engaged in any capacity, except as a passive investor owning less than a two percent (2%) interest in a publicly held company, in any business or entity that is competitive with the business of Wendy’s or its affiliates. This restriction includes any business engaged in the drive through or food service restaurant business where hamburgers, chicken sandwiches or entree salads are predominant products (i.e., constituting 15% or more, individually or in the aggregate, of food products not including beverages) and, for the avoidance of doubt, does not include the current business of PepsiCo. Notwithstanding anything to the contrary herein, this restriction shall not prohibit you from accepting employment, operating or otherwise becoming associated with a franchisee of Wendy’s, any of its affiliates or any subsidiary of the foregoing, but only in connection with activities associated with the operation of such a franchise or activities that otherwise are not encompassed by the restrictions of this paragraph, subject to your confidentiality obligations contained herein; (ii) without Wendy’s prior written consent, hire or cause to be hired, solicit or encourage to cease to work with Wendy’s or any of its subsidiaries or affiliates, any person who is at the time of such activity, or who was within the six (6) month period preceding such activity, an employee of Wendy’s or any of its subsidiaries or affiliates at the level of director or any more senior level or a consultant under contract with Wendy’s or any of its subsidiaries or affiliates and whose primary client is such entity or entities; and (iii) solicit, encourage or cause any franchisee or supplier of Wendy’s or any of its subsidiaries or affiliates to cease doing business with Wendy’s or to reduce the amount of business such franchisee or supplier does with Wendy’s or such subsidiary or affiliate. Notwithstanding the foregoing, you may own stock in Wendy’s and may operate, directly or indirectly, Wendy’s restaurants as a franchisee without violating sections (i) or (iii). NON-DISPARAGEMENT. You agree that during your employment with Wendy’s, and at all times thereafter, you will not defame, disparage, make negative statements about, or act in any manner that is intended to, would reasonably be expected to, or does damage the goodwill, business or personal reputations of, any of Wendy’s, its subsidiaries, affiliates or their respective officers, directors and employees. In the event your employment with Wendy’s terminates, upon your request the Board of Directors of Wendy’s and such other individuals as you reasonably request will be instructed not to defame, disparage, make negative statements about, or act in any manner that is intended to, would reasonably be expected to, or does damage to your goodwill, business or personal reputation (it being understood that a failure of any person to follow such instruction will not constitute a breach of this Addendum). These non-disparagement covenants have no temporal, geographical or territorial restriction. RESERVATION OF RIGHTS. Nothing in this Addendum shall prohibit you from: (a) responding truthfully and in good faith as may be required by applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, in which case you shall promptly provide written notice of any such order to an authorized director of Wendy’s to the extent permitted by law; (b) initiating communications, in good faith, directly with, responding to an inquiry from, cooperating with, or providing testimony before the Securities and Exchange Commission, the Financial Industry Regulatory Authority, the Equal Employment Opportunity Commission, the Department of Labor, the Department of Justice, the Occupational Safety and Health Administration, any other self-regulatory organization, or any other federal, state or local agency regarding any violation of law, any of which can be made without notification to Wendy’s; (c) making truthful internal statements to Wendy’s, its subsidiaries, affiliates or their respective officers, directors and employees that you in good faith believe are necessary or appropriate to make in connection with performing your duties and obligations to Wendy’s; (d) making truthful statements to the extent necessary to correct or refute an inaccurate public statement; or (e) discussing or disclosing information about sexual harassment, sexual assault, or unlawful acts in the workplace (including harassment, discrimination or other conduct you have reason to believe is unlawful). RETURN OF COMPANY PROPERTY. You agree that, at the time of termination of your employment with Wendy’s for any reason, you will deliver to Wendy’s (and will not keep in your possession, recreate, or deliver to anyone else) any and all Confidential Information and all other documents, materials, information, and property developed or received by you pursuant to your employment or otherwise belonging to Wendy’s (including any documents maintained on paper or in any electronic, photographic, video or other format, including through cloud computing software). LEGAL AND EQUITABLE REMEDIES. You understand and agree that any breach by you of the provisions of this Addendum will be considered a material breach of your employment agreement with the Company (the “Employment Letter”), and that it may be impossible to assess the damages caused by such a breach. You therefore agree that any threatened or actual violation of this Addendum or any of its terms may constitute immediate and irreparable injury to Wendy’s and Wendy’s shall have the right to enforce this Addendum and any of its provisions by injunction, specific performance or other equitable relief, without bond and without prejudice to any other rights and remedies that Wendy’s may have for a breach or threatened breach of this Addendum. You further agree that in the event of such a threatened or actual breach, Wendy’s will be released from any obligation to make any payments to you or on your behalf under the Employment Letter and/or, if any such payment has already been made, Wendy’s will be entitled to appropriate relief, including, without limitation, repayment by you of the gross amounts (before reduction for withholding) already paid to you under any agreement, including the Employment Letter, with Wendy’s. MISCELLANEOUS. If any competent authority having jurisdiction over this Addendum determines that any of the provisions is unenforceable because of the duration or geographical scope of such provision, such competent authority shall have the power to reduce the duration or scope, as the case may be, of such provision and, in its reduced form, such provision shall then be enforceable and provide the maximum protection of Wendy’s business interests permitted by law. In the event of your breach of your obligations under the post-employment restrictive covenants, then the post-employment restricted period shall be tolled and extended during the length of such breach, to the extent permitted by law. You agree that you have read this entire Addendum, reviewed with your attorney, and understand it. You agree that this Addendum does not prevent you from earning a living or pursuing your career. You agree that the restrictions contained in this Addendum are reasonable, proper, and necessitated by Wendy’s legitimate business interests. --- ## STEVEN W. CIRULIS EMPLOYMENT LETTER SEC source: [twc_ex102xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex102xq2-26.htm) EXHIBIT 10.2 June 19, 2026 Electronic Delivery: Dear Steve, The Wendy’s Company is delighted to confirm the offer of employment for the position of Chief Financial Officer & Chief Strategy Officer reporting directly to the President & Chief Executive Officer. We believe you will contribute to the Company’s overall success and trust that Wendy’s will provide you with the career environment and opportunities you seek. We look forward to you joining the team - your start date is to be determined but projected to be June 23, 2026. COMPENSATION AND BENEFITS. The following is a summary of your compensation and benefits, but it does not contain all the details. The complete understanding between the Company and you regarding your compensation and benefits is governed by legal plan documents and Company policies. If there is a discrepancy between the information in this letter and the legal plan documents/Company policies, the legal plan documents/Company policies will prevail. All forms of compensation referenced in this letter are subject to all applicable deductions and withholdings. 1.Base Salary. Your starting base annualized salary will be $675,000 paid on a bi-weekly basis. 2.Annual Incentive. You will be eligible to receive an incentive under the terms and conditions of the incentive plan provided to similarly situated officers of the Company, which currently provides for a target bonus of 90% of your annual base salary, provided performance measures set by the Company are achieved. Any bonus to which you are entitled in your initial year of employment will be prorated based on the number of full calendar months you are employed from your start date, and performance achievement will be based solely on the measures approved by the Compensation and Human Capital Committee for the 2nd half of the year. 3.Benefits. You shall be entitled to participate in any retirement, fringe benefit, or welfare benefit plan of the Company on the same terms as provided to similarly situated officers of the Company, including any plan providing medical, prescription, dental, vision, disability, life, accidental death, and travel accident insurance benefits that the Company may adopt for the benefit of similarly situated officers, in accordance with the terms of such plan. You will be eligible to participate in benefit programs after 30 days of service. 4.Executive Physical. Wendy’s wants to ensure that its leaders are provided with comprehensive health exams to help them maintain their health and peak performance. Wendy’s provides all officers of the company with the opportunity to receive an Executive Physical and will cover the cost up to $4,000 annually for an executive physical exam completed through the Company’s preferred partner, or another qualified provider of your choosing. Additional details will be provided after hire. 5.Executive Financial Planning. Wendy’s provides all officers of the company at the Senior Vice President level or above with the opportunity to enroll in personal Financial Planning Services through Ayco Goldman Sachs. Additional details will be provided after hire. 6.Vacation. You will be eligible to take up to five weeks of vacation per year. 7.Equity Awards. Commencing in 2026, you will be eligible to receive awards under the terms and conditions of the Company’s annual long-term incentive award program in effect for other similarly situated executives of the Company, subject to Subcommittee approval. Your annualized target will initially be $1,650,000 (before pro-ration). For 2026, the Performance Share award amount will be reduced based on your time in role during the performance period. Subject to Subcommittee approval, your 2026 equity awards will be granted on or as soon as practicable after your start date and will consist of: Performance Share award in the amount of $825,000, an award of stock options in the amount of $412,500, and an award of restricted stock units in the amount of $247,500. 8.Severance. The Company’s Executive Severance Pay Policy provides for certain pay and benefits in the event the Company terminates your employment without cause or within twelve (12) months following a change in control (the “Severance Payments”). Notwithstanding the language in the Company’s Executive Severance Pay Policy that permits payment to be made at the sole discretion of Wendy’s,the Severance Payments shall be no less than the pay and benefits provided under the Company’s Executive Severance Pay Policy in effect on the date of this offer letter, and shall only be provided in exchange for your execution of a Severance Agreement and Release in the form approved by the Company, including a general release of any and all claims concerning your employment and termination in favor of the Company. You will not be entitled to severance in the event the Company terminates you for cause or in the event you voluntarily resign or terminate your employment with the Company. In accepting this offer, you agree to the attached Non-Compete and Confidentiality Addendum. Please note that this offer is contingent upon successful completion of a background check. We look forward to you becoming a part of the Wendy’s team and are confident that you can have a long-term, positive impact on our business. Nonetheless, please understand that Wendy’s is an at-will employer. That means that either you or Wendy’s are free to end the employment relationship at any time, with or without notice or cause. This offer letter, including all attachments, is governed by Ohio law, without regard to conflict of law principles, and will be binding up and enforceable by the Company’s successors and assigns, if applicable. Please review the information contained in this letter and attachments, as it represents the complete understanding between you and the Company concerning the subject matter of this letter and supersedes any prior or contemporaneous offers, term sheets, agreements, understandings or communications between you and the Company (oral or written). You acknowledge that in accepting this offer you have not relied on any representation which is not set forth herein. Once you have had an opportunity to consider this letter, and provided you wish to accept the position on the terms outlined, please return an executed copy of this letter to me. I’m excited about the prospect of working with you on the Wendy’s leadership team. Should you have any questions, please do not hesitate to contact me. Yours truly, /s/ Robert D. Wright Robert D. Wright President and Chief Executive Officer THE WENDY'S COMPANY Accepted and Agreed: /s/ Steven W. Cirulis Steven W. Cirulis June 19, 2026 Date NON-COMPETE AND CONFIDENTIALITY ADDENDUM TO OFFER LETTER OF June 19, 2026 This Addendum is a part of the terms of your employment with the Company. By accepting your offer letter, you are also accepting the terms of this Addendum. CONFIDENTIAL INFORMATION. You agree that you will not at any time during your employment and anytime thereafter, divulge, furnish, or make known or accessible to, or use for the benefit of anyone other than Wendy’s, its subsidiaries and affiliates and their respective officers, directors and employee, any information of a confidential nature relating in any way to the business of Wendy’s or its subsidiaries or affiliates, or any of their respective franchisees, suppliers or distributors. You further agree that you are not subject to any agreement that would restrict you from performing services to Wendy’s and that you will not disclose to Wendy’s or use on its behalf, any confidential information or material that is the property of a former employer or third party. NONCOMPETE/NONSOLICITATION/EMPLOYEE NO-HIRE. You acknowledge that you will be involved, at the highest level, in the development, implementation, and management of Wendy’s business strategies and plans, including those which involve Wendy’s finances, marketing and other operations, and acquisitions and, as a result, you will have access to Wendy’s most valuable trade secrets and proprietary information. By virtue of your unique and sensitive position, your employment by a competitor of Wendy’s represents a material unfair competitive danger to Wendy’s and the use of your knowledge and information about Wendy’s business, strategies and plans can and would constitute a competitive advantage over Wendy’s. You further acknowledge that the provisions of this section are reasonable and necessary to protect Wendy’s legitimate business interests. You agree that during your employment with Wendy’s and either (x) in the event you resign or your employment with Wendy’s is terminated “without cause”, for a period of eighteen (18) months following such termination, or (y) in the event your employment with Wendy’s is terminated for cause, for a period of twelve (12) months following such termination: (i) in any state or territory of the United States (and the District of Columbia) or any country where Wendy’s maintains restaurants, you will not engage or be engaged in any capacity, “directly or indirectly” (as defined below), except as a passive investor owning less than a two percent (2%) interest in a publicly held company, in any business or entity that is competitive with the business of Wendy’s or its affiliates. This restriction includes any business engaged in drive through or food service restaurant business where hamburgers, chicken sandwiches or entree salads are predominant products (15% or more, individually or in the aggregate, of food products not including beverages). Notwithstanding anything to the contrary herein, this restriction shall not prohibit you from accepting employment, operating or otherwise becoming associated with a franchisee of Wendy’s, any of its affiliates or any subsidiary of the foregoing, but only in connection with activities associated with the operation of such a franchise or activities that otherwise are not encompassed by the restrictions of this paragraph, subject to any confidentiality obligations contained herein; (ii) you will not, directly or indirectly, without Wendy’s prior written consent, hire or cause to be hired, solicit or encourage to cease to work with Wendy’s or any of its subsidiaries or affiliates, any person who is at the time of such activity, or who was within the six (6) month period preceding such activity, an employee of Wendy’s or any of its subsidiaries or affiliates at the level of director or any more senior level or a consultant under contract with Wendy’s or any of its subsidiaries or affiliates and whose primary client is such entity or entities; and (iii) you will not, directly or indirectly, solicit, encourage or cause any franchisee or supplier of Wendy’s or any of its subsidiaries or affiliates to cease doing business with Wendy’s or subsidiary or affiliate, or to reduce the amount of business such franchisee or supplier does with Wendy’s or such subsidiary or affiliate. For purposes of this section, “directly or indirectly” means in your individual capacity for your own benefit or as a shareholder, lender, partner, member or other principal, officer, director, employee, agent or consultant of or to any individual, corporation, partnership, limited liability company, trust, association or any other entity whatsoever; provided, however, that you may own stock in Wendy’s and may operate, directly or indirectly, Wendy’s restaurants as a franchisee without violating sections (i) or (iii). If any competent authority having jurisdiction over this section determines that any of the provisions is unenforceable because of the duration or geographical scope of such provision, such competent authority shall have the power to reduce the duration or scope, as the case may be, of such provision and, in its reduced form, such provision shall then be enforceable. The obligations in this Addendum are intended to be read consistent with any applicable professional conduct rules and should be interpreted in that manner. The invalidity or unenforceability of any provision of this Addendum (and the agreement into which it is incorporated) shall not affect or limit the validity and enforceability of the other provisions hereof. The obligations in this Addendum are intended to be read consistent with any applicable professional conduct rules and should be interpreted in that manner. In the event of your breach of your obligations under the post-employment restrictive covenants, then the post-employment restricted period shall be tolled and extended during the length of such breach, to the extent permitted by law. --- ## NONQUALIFIED STOCK OPTION AWARD AGREEMENT SEC source: [twc_ex104xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex104xq2-26.htm) EXHIBIT 10.4 NONQUALIFIED STOCK OPTION AWARD AGREEMENT UNDER THE WENDY’S COMPANY 2020 OMNIBUS AWARD PLAN _______________ Shares of Common Stock THIS NONQUALIFIED STOCK OPTION AWARD AGREEMENT (this “Agreement”) is made as of ____________, 20___, by and between The Wendy’s Company (the “Company”) and __________________ (the “Optionee”). The Company, pursuant to the provisions of The Wendy’s Company 2020 Omnibus Award Plan (the “Plan”), hereby irrevocably grants to the Optionee the right and option (the “Option”) to purchase _______________ shares of Common Stock, par value $0.10 per share (the “Common Stock”), of the Company upon and subject to the following terms and conditions: 1.The Option is not intended to qualify as an incentive stock option under the provisions of Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”). 2.____________, 20___ is the date of grant of the Option (the “Date of Grant”). 3.The purchase price of the shares of Common Stock subject to the Option shall be $________ per share (the “Exercise Price”), which is the Fair Market Value on the Date of Grant, as determined by the Committee. 4.Subject to the Optionee’s continued provision of services to the Company, the Option shall be exercisable as follows: (a)One-third of the shares of Common Stock subject to the Option shall be exercisable on or after the first anniversary of the Date of Grant; (b)One-third of the shares of Common Stock subject to the Option shall be exercisable on or after the second anniversary of the Date of Grant; and (c)One-third of the shares of Common Stock subject to the Option shall be exercisable on or after the third anniversary of the Date of Grant. Notwithstanding the foregoing, in the event the Optionee’s employment or service to the Company and its Subsidiaries is terminated, the Option shall vest and become exercisable as follows: (i)Change in Control, Death or Disability. The Options shall become fully (100%) and immediately vested upon a termination of employment or service: (A) by the Company or its Subsidiaries other than for Cause (and other than due to death or Disability) within twelve (12) months following a Change in Control; (B) by the Optionee for Good Reason within twelve (12) months following a Change in Control; (C) as a result of the Optionee’s death; or (D) due to the Optionee’s Disability; (ii) Severance. If (A) the Optionee is subject to an employment letter with the Company or its Subsidiaries, is in a class of employees subject to the Company’s Executive Severance Pay Policy, or is in a class of employees subject to another severance policy adopted by the Company or its Subsidiaries, (B) such employment letter or policy addresses the treatment of Options and (C) the Optionee is terminated without Cause (other than in connection with a Change in Control, death or Disability as set forth in clause (i) above), the Options shall vest and become exercisable as set forth under such employment letter or policy, as applicable; and (iii) Retirement. In the event of the Optionee’s Retirement (as defined below), the Optionee will continue to vest in the Options according to the vesting schedule set forth in this Section 4 as if the Optionee remained employed on each applicable vesting date. For purposes of these Options, “Retirement” shall mean the Optionee’s voluntary termination of the Optionee’s employment or service with the Company and its Subsidiaries at a time that Cause does not exist (A) after attaining age sixty (60), (B) after having at least ten (10) years of employment or service with the Company or its Subsidiaries, (C) as of a date specified (or such other date as agreed to by the Company) in a written notice of proposed Retirement provided by the Optionee to the Company at least six (6) months before the proposed Retirement date and (D) Optionee otherwise complying with the Company’s then-current retirement policy. 5.The unexercised portion of the Option shall automatically and without notice terminate and become null and void at the earlier of (i) the tenth anniversary of the Date of Grant (the “Option Period”) and (ii) the earliest applicable time set forth below: (a)Termination for Cause. In the event the Optionee’s employment or service to the Company and its Subsidiaries is terminated by the Company or its Subsidiaries for Cause, all outstanding Options granted to the Optionee shall immediately terminate and expire; (b)Death, Disability or Change in Control. In the event the Optionee’s employment or service to the Company and its Subsidiaries is terminated by the Company or its Subsidiaries due to the Optionee’s death, Disability or without Cause within 12 months after a Change in Control or by the Optionee for Good Reason within 12 months after a Change in Control, each outstanding vested Option shall remain exercisable for one (1) year thereafter (but in no event beyond the expiration of the Option Period); (c)Severance. Unless otherwise provided by the Committee, in the event the Optionee’s employment or service to the Company and its Subsidiaries is terminated by the Company or its Subsidiaries other than for Cause (and other than in connection with death, Disability or a Change in Control as described in Section 4 above): (i)if the Optionee is subject to an employment letter with the Company or its Subsidiaries, is in a class of employees subject to the Company’s Executive Severance Pay Policy or is in a class of employees subject to another severance policy adopted by the Company or its Subsidiaries, and such employment letter or policy addresses the treatment of Options, the Options shall be exercisable for the greater of ninety (90) days and the period as set forth under such employment letter or policy (but in no event beyond the expiration of the Option Period); or (ii)if the Optionee is not in a class of employees described in Section 5(c)(i), each outstanding vested Option shall remain exercisable for ninety (90) days after the termination date (but in no event beyond the expiration of the Option Period); (d)Retirement. Unless otherwise provided by the Committee, in the event of the Optionee’s Retirement (as defined in Section 4(c) above), each outstanding Option shall remain exercisable for the remainder of the Option Period (but in no event may an outstanding Option be exercised before its applicable vesting date); and (e)Other Termination. Unless otherwise provided by the Committee, in the event the Optionee’s employment or service to the Company and its Subsidiaries is terminated for any other reason not stated in Section 5(a), (b), (c) or (d) above, and after taking into account any accelerated vesting under Section 4 above, each outstanding unvested Option granted to the Optionee shall immediately terminate and expire, and each outstanding vested Option shall remain exercisable for ninety (90) days thereafter (but in no event beyond the expiration of the Option Period). 6.Options which have become exercisable may be exercised by the Optionee, subject to the provisions of the Plan and this Agreement, as to all or part of the shares of Common Stock covered hereby, by the giving of written or electronic notice of such exercise to the Company at its principal business office (or telephonic instructions to the extent permitted by the Committee), accompanied by payment of the full purchase price for the shares being purchased. No shares of Common Stock shall be delivered pursuant to any exercise of an Option until payment in full of the Exercise Price therefor is received by the Company and the Optionee has paid to the Company an amount equal to any Federal, state, local and non-U.S. income and employment taxes required to be withheld. The Exercise Price shall be payable: (a) in cash, check, cash equivalent and/or shares of Common Stock valued at Fair Market Value at the time the Option is exercised (including, pursuant to procedures approved by the Committee, by means of attestation of ownership of a sufficient number of shares of Common Stock in lieu of actual delivery of such shares to the Company), provided that such shares of Common Stock are not subject to any pledge or other security interest; or (b) by such other method as the Committee may permit in its sole discretion, including without limitation: (i) in other property having a Fair Market Value on the date of exercise equal to the Exercise Price; (ii) if there is a public market for the shares of Common Stock at such time, by means of a broker-assisted “cashless exercise” pursuant to which the Company is delivered (including telephonically to the extent permitted by the Committee) a copy of irrevocable instructions to a stockbroker to sell the shares of Common Stock otherwise deliverable upon the exercise of the Option and to deliver promptly to the Company an amount equal to the Exercise Price; or (iii) a “net exercise” procedure effected by withholding the minimum number of shares of Common Stock otherwise deliverable in respect of an Option that are needed to pay the Exercise Price and all applicable required withholding taxes. Any fractional shares of Common Stock shall be settled in cash. The Company shall cause certificates for the shares so purchased to be delivered to or registered (and held in book entry form) in the name of the Optionee or the Optionee’s executors or administrators, against payment of the purchase price, as soon as practicable following the Company’s receipt of the notice of exercise. 7.Neither the Optionee nor the Optionee’s executors or administrators shall have any of the rights of a stockholder of the Company with respect to the shares subject to the Option until such Option is validly exercised. 8.The Option shall not be transferable by the Optionee other than to the Optionee’s executors or administrators by will or the laws of descent and distribution, and during the Optionee’s lifetime shall be exercisable only by the Optionee, except as may be otherwise permitted by the Committee in its sole discretion pursuant to the Plan. 9.In the event of the Optionee’s death, the Option shall thereafter be exercisable (to the extent otherwise exercisable hereunder) only by the Optionee’s executors, administrators or the beneficiary(ies) designated in writing by the Optionee in a manner permitted by the Committee. The Optionee has the right to change any such beneficiary designation at will. 10.The terms and conditions of the Option, including the number of shares and the class or series of capital stock that may be delivered upon exercise of the Option and the purchase price per share, are subject to adjustment as provided in the Plan, including, without limitation, under Section 12 of the Plan. 11.The Optionee agrees that the obligation of the Company to issue shares of Common Stock upon the exercise of the Option shall also be subject, as conditions precedent, to compliance with applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, state securities or corporation laws, rules and regulations under any of the foregoing and applicable requirements of any securities exchange upon which the Company’s securities shall be listed. 12.The Optionee acknowledges and agrees that the Option is subject to (a) the clawback and forfeiture provisions of Section 14(u) of the Plan, (b) the Company’s Policy for Recoupment of Incentive Compensation and (c) any subsequent clawback or forfeiture policy adopted by the Board or the Committee that is communicated to the Optionee or that is consistent with applicable law, whether the Option was granted before or after the effective date of any such clawback or forfeiture policy. Consistent with Section 14(u) of the Plan, the Committee may, in its sole discretion, cancel the Option if the Optionee, without the consent of the Company, while employed by or providing services to the Company or any Affiliate or after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement or otherwise has engaged in or engages in any Detrimental Activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. If the Committee determines, in its sole discretion, that the Optionee has engaged in or engages in any activity referred to in the preceding sentence, the Committee may require the Optionee to forfeit any gain realized on the exercise of the Option and to repay the gain to the Company. In addition, if the Optionee receives any amount in excess of what the Optionee should have received under the terms of the Option for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the Optionee agrees to repay any such excess amount to the Company. 13.The Option has been granted subject to the terms and conditions of the Plan, a copy of which has been provided to the Optionee and which the Optionee acknowledges having received and reviewed. Any conflict between this Agreement and the Plan shall be decided in favor of the provisions of the Plan. Any conflict between this Agreement and the terms of a written employment agreement for the Optionee that has been approved, ratified or confirmed by the Board of Directors of the Company (the “Board”) or the Committee shall be decided in favor of the provisions of such employment agreement. Capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Plan. This Agreement represents the entire agreement between the parties and supersedes all prior and contemporaneous agreements and understandings relative to the same subject matter. The covenants contained in this Agreement (including any attachments) are intended to co-exist with and are not affected by any covenants contained in other agreements to which any of the parties hereto are or may become parties, are independently enforceable and do not supersede such other covenants. This Agreement is not intended to and does not amend, alter, suspend, discontinue, cancel or terminate any other award agreement executed by Optionee and the Company. This Agreement may not be amended, altered, suspended, discontinued, cancelled or terminated in any manner that would materially and adversely affect the rights of the Optionee except by a written agreement executed by the Optionee and the Company. 14.By accepting the Options evidenced by this Agreement, the Optionee hereby consents to the electronic delivery of all documents, including prospectuses, annual reports and other information required to be delivered by Securities and Exchange Commission rules. This consent may be revoked in writing by the Optionee at any time upon three (3) business days’ notice to the Company, in which case all documents, including subsequent prospectuses, annual reports and other information, will be delivered in hard copy to the Optionee. 15.The Optionee shall be required to pay to the Company, and the Company shall have the right and is hereby authorized to withhold, from any cash, shares of Common Stock, other securities or other property deliverable under the Option or from any compensation or other amounts owing to the Optionee, the amount (in cash, Common Stock, other securities or other property) of any required withholding taxes in respect of the Option, and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such withholding and taxes. Regardless of the amount withheld or reported, the Optionee is solely responsible for all taxes in respect of the Option (including taxes on imputed compensation), except for the Company’s share of applicable employment taxes. In addition, the Committee may, in its sole discretion, permit the Optionee to satisfy, in whole or in part, the foregoing withholding liability (but no more than the withholding liability calculated using the highest marginal tax rate) by (a) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) owned by the Optionee having a Fair Market Value equal to such withholding liability or (b) having the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable pursuant to the exercise or settlement of the Option a number of shares with a Fair Market Value equal to such withholding liability. The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Optionee. If no election is made by the Optionee, the Company will withhold shares of Common Stock to satisfy the minimum statutory required tax withholding. 16.Notices and communications under this Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to The Wendy’s Company, One Dave Thomas Boulevard, Dublin, Ohio 43017, Attention: Corporate Secretary, or any other address designated by the Company in a written notice to the Optionee. Notices to the Optionee will be directed to the address of the Optionee then currently on file with the Company, or at any other address given by the Optionee in a written notice to the Company. 17.If any provision of this Agreement could cause the application of an accelerated or additional tax under Section 409A of the Code upon the vesting or exercise of the Option (or any portion thereof), such provision shall be restructured, to the minimum extent possible, in a manner determined by the Company (and reasonably acceptable to the Optionee) that does not cause such an accelerated or additional tax. 18.This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. For purposes of litigating any dispute that arises under this Agreement, unless otherwise provided in a written employment agreement or letter, arbitration agreement or severance agreement and release executed by the parties, the parties hereby submit to and consent to the jurisdiction of the State of Ohio and agree that such litigation shall be conducted in the courts of Franklin County in the State of Ohio, or the federal courts for the Southern District of Ohio, where the grant of the Option is made and/or to be performed. 19.This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Furthermore, delivery of a copy of a counterpart signature by facsimile or electronic transmission shall constitute a valid and binding execution and delivery of this Agreement, and such copy shall constitute an enforceable original document. 20.This Agreement may be executed and exchanged by facsimile or electronic mail transmission and the facsimile or electronic mail copies of each party’s respective signature will be binding as if the same were an original signature. This Agreement may also be executed through the use of electronic signature, which each party acknowledges is a lawful means of obtaining signatures in the United States. Each party agrees that its electronic signature is the legal equivalent of its manual signature on this Agreement. Each party further agrees that its use of a key pad, mouse or other device to select an item, button, icon or similar act/action, regarding any agreement, acknowledgement, consent terms, disclosures or conditions constitutes its signature, acceptance and agreement as if actually signed by such party in writing. Furthermore, to the extent applicable, all references to signatures in this Agreement may be satisfied by procedures that the Company or a third party designated by the Company has established or may establish for an electronic signature system, and the Optionee’s electronic signature shall be the same as, and shall have the same force and effect as, such Optionee’s written signature. 21.The Optionee agrees and acknowledges that by accepting the Option, the Optionee (a) consents to the collection, use and transfer, in electronic or other form, of any of the Optionee’s personal data that is necessary or appropriate to facilitate the implementation, administration and management of the Option, this Agreement and the Plan, (b) understands that the Company may, for purposes of implementing, administering and managing the Plan, hold certain personal information about the Optionee, including, without limitation, the Optionee’s name, home address, telephone number, date of birth, social security number or other identification number, salary, nationality, job title, and details of all awards or entitlements to awards granted to the Optionee under the Plan or otherwise (“Personal Data”), (c) understands that Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, including any broker with whom the shares of Common Stock issued upon exercise of the Option may be deposited, and that these recipients may be located in the United States or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the United States, (d) waives, solely for purposes of implementing, administering and managing the Option and the Plan, any data privacy rights that the Optionee may have with respect to the Personal Data, and (e) authorizes the Company, its Affiliates and its agents, to store and transmit such Personal Data and related information in electronic form. The Optionee understands that the Optionee is providing consent under this Section 21 on a purely voluntary basis. If the Optionee does not consent, or if the Optionee later seeks to revoke consent, the Optionee’s employment status or service with the Company will not be affected; the only consequence of the Optionee’s refusing or withdrawing consent is that the Company would not be able to grant the Option or other awards to the Optionee or implement, administer or maintain such awards. 22.This Agreement shall be valid, binding and effective upon the Company and Optionee as of the date Optionee accepts and agrees to the Agreement, so long as such acceptance is received by the Company by the deadline and in the manner prescribed by the Company and communicated to the Optionee. If Optionee fails to accept and agree to this Agreement on or prior to such date and in the manner prescribed by the Company and communicated to the Optionee, this Agreement will not be binding and enforceable, Optionee shall have no rights and interests pursuant to this Agreement, including specifically the Options evidenced by this Agreement shall be forfeited, and neither the Optionee nor the Optionee’s heirs, executors, administrators and successors shall have any rights with respect thereto. This Agreement, if accepted by the Optionee, shall inure to the benefit of and be binding upon and enforceable by the Company’s successors and assigns. 23.This grant does not constitute an employment contract. Nothing in the Plan or this Agreement shall (a) confer upon the Optionee the right to continue to serve as a director or officer to, or to continue as an employee or service provider of, the Company or any of its Affiliates for the length of the vesting schedule set forth in Section 4 above or for any portion thereof or (b) be deemed to be a modification or waiver of the terms and conditions set forth in any written employment agreement for the Optionee that has been approved, ratified or confirmed by the Board or the Committee. The failure of either party to enforce any term of this Agreement shall not constitute a waiver of any rights or deprive the party of the right to insist thereafter upon strict adherence to that or any other term of this Agreement, nor shall a waiver of any breach of this Agreement constitute a waiver of any preceding or succeeding breach. 24.The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Optionee’s participation in the Plan or the Optionee’s acquisition or sale of the shares of Common Stock. The Optionee should consult with his or her personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan. 25.The Options and any underlying shares of Common Stock, and the income from and value of the same (either on the Award Date or at the time of exercise) shall not be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan. 26.The Committee shall have full authority and discretion (subject only to the express provisions of the Plan) to decide all matters relating to the administration and interpretation of this Agreement. All such Committee determinations shall be final, conclusive and binding upon the Company, the Optionee and any and all interested parties. [Remainder of page intentionally left blank.] IN WITNESS WHEREOF, the Company, by a duly authorized officer thereof, has caused this Nonqualified Stock Option Award Agreement to be executed as of the date hereof. THE WENDY’S COMPANY By: Name: Title: --- ## RESTRICTED STOCK UNIT AWARD AGREEMENT (RATABLE VESTING) SEC source: [twc_ex105xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex105xq2-26.htm) EXHIBIT 10.5 RESTRICTED STOCK UNIT AWARD AGREEMENT UNDER THE WENDY’S COMPANY 2020 OMNIBUS AWARD PLAN RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), made as of _____________, 20___, by and between The Wendy’s Company (the “Company”) and __________________ (the “Participant”): WHEREAS, the Company maintains The Wendy’s Company 2020 Omnibus Award Plan (the “Plan”) under which the Compensation and Human Capital Committee of the Company’s Board of Directors or a subcommittee thereof (the “Committee”) may, among other things, award shares of the Company’s Common Stock, to such eligible persons under the Plan as the Committee may determine, subject to terms, conditions or restrictions as the Committee may deem appropriate; and WHEREAS, pursuant to the Plan, the Committee has awarded to the Participant a restricted stock unit award conditioned upon the execution by the Company and the acceptance by the Participant of a Restricted Stock Unit Award Agreement setting forth all the terms and conditions applicable to such award in accordance with Delaware law. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereby agree as follows: 1.Defined Terms. Except as otherwise specifically provided herein, capitalized terms used herein shall have the meanings attributed thereto in the Plan. 2.Award of Restricted Stock Units. Subject to the terms of the Plan and this Agreement, the Committee hereby awards to the Participant a restricted stock unit award (the “Restricted Stock Unit Award”) on _____________, 20___ (the “Award Date”) covering __________ shares of Common Stock (the “RSUs”). Each RSU represents the right to receive payment of one (1) share of Common Stock as of the date the RSU is settled, to the extent the RSU is vested, subject to the terms of the Plan and this Agreement. 3.Vesting and Settlement. Subject to the Participant’s continued employment with the Company and its Subsidiaries (other than as set forth in Section 6 below): 3.1. One-third of the RSUs shall vest and become nonforfeitable on the first anniversary of the Award Date; 3.2. One-third of the RSUs shall vest and become nonforfeitable on the second anniversary of the Award Date; and 3.3. One-third of the RSUs shall vest and become nonforfeitable on the third anniversary of the Award Date (each such anniversary is referred to as a “Vesting Date,” with the Vesting Date on the third anniversary of the Award Date also being referred to as the “Final Vesting Date”). 3.4.Promptly after each applicable Vesting Date (but in no event later than the last day of the calendar year in which the Vesting Date occurs), the Company shall distribute to the Participant one (1) share of Common Stock for each vested RSU. 4.Dividend Equivalent Rights. Each RSU shall also have a dividend equivalent right (a “Dividend Equivalent Right”). Each Dividend Equivalent Right represents the right to receive all of the ordinary cash dividends that are or would be payable with respect to the RSUs. With respect to each Dividend Equivalent Right, any such cash dividends shall be converted into additional RSUs based on the Fair Market Value of a share of Common Stock on the date such dividend is paid. Such additional RSUs shall be subject to the same terms and conditions applicable to the RSU to which the Dividend Equivalent Right relates, including, without limitation, the restrictions on transfer, forfeiture, vesting and settlement provisions contained in this Agreement. In the event that an RSU is forfeited as provided in Section 6 below, then the related Dividend Equivalent Right shall also be forfeited. 5.Transferability. The RSUs shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or an Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. The shares of Common Stock acquired by the Participant upon settlement of the RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant, unless in compliance with all applicable securities laws as set forth in Section 15 below. The Participant shall not be deemed for any purpose to be the owner of any shares of Common Stock subject to the RSUs prior to settlement of any vested RSUs. 6.Effect of Termination of Employment or Service. (a)Change in Control or Death. In the event of (i) the termination of the Participant’s employment or service to the Company and its Subsidiaries by the Company other than for Cause (and other than due to death), or by the Participant for Good Reason, in each case within twelve (12) months following a Change in Control, or (ii) the termination of the Participant’s employment or service due to death, outstanding RSUs hereby granted to the Participant shall become fully vested as of the date of such termination of employment or service, and shall promptly thereafter (and, in any event, no later than the last day of the calendar year in which such vesting occurs) be settled by distribution to the Participant of one (1) share of Common Stock for each vested RSU (subject to the six-month delay required by Section 14(t)(ii) of the Plan for amounts that are subject to Section 409A of the Code, if the Participant is a “specified employee” at the time of separation). (b)Disability. In the event of the termination of the Participant’s employment or service due to Disability, outstanding RSUs hereby granted to the Participant shall continue to vest according to the vesting schedule set forth in Section 3 as if the Participant remained employed on each applicable Vesting Date; provided that if such termination occurs within twelve (12) months following a Change in Control, payment shall be made at the time prescribed by Section 6(a). (c)Severance. In the event the Participant’s employment or service to the Company and its Subsidiaries are terminated by the Company prior to the date the RSUs would otherwise vest in accordance with Section 3 above other than for Cause (and other than following a Change in Control or in connection with the Participant’s death or Disability, each as described in further detail in Section 6(a) or (b)), if the Participant is subject to an employment letter with the Company or its Subsidiaries, is in a class of employees subject to the Company’s Executive Severance Pay Policy, or is in a class of employees subject to another severance policy adopted by the Company or its Subsidiaries, and such employment letter or policy addresses the treatment of the RSUs, the RSUs shall vest as set forth under such employment letter or policy, as applicable. (d)Retirement. In the event of the Participant’s Retirement (as defined below), any unvested RSUs on the date of such Retirement shall continue to vest according to the vesting schedule set forth in Section 3 as if the Participant remained employed on each applicable Vesting Date; provided that if the Participant’s separation from service occurs within twelve (12) months following a Change in Control, payment shall be made at the time prescribed by Section 6(a). For purposes of this Award, “Retirement” shall mean the Participant’s voluntary termination of the Participant’s employment or service with the Company and its Subsidiaries at a time that Cause does not exist (A) after attaining age sixty (60), (B) after having at least ten (10) years of employment or service with the Company or its Subsidiaries, (C) as of a date specified (or such other date as agreed to by the Company) in a written notice of proposed Retirement provided by the Participant to the Company at least six (6) months before the proposed Retirement date and (D) the Participant otherwise complying with the Company’s then-current retirement policy. (e)Other Voluntary Termination. Upon voluntary termination of the Participant’s employment or service with the Company and any of its Subsidiaries by the Participant, other than for Good Reason following a Change in Control as set forth in Section 6(a) or for Retirement as set forth in Section 6(c), the Restricted Stock Unit Award, to the extent not already vested, shall be forfeited, unless otherwise determined by the Committee in its sole discretion. 7.Beneficiary. The Participant may designate in writing one or more beneficiaries to receive the stock certificates (or, if applicable, a notice evidencing book entry notation) representing those RSUs that become vested and nonforfeitable and settled upon the Participant’s death. The Participant has the right to change any such beneficiary designation at will. 8.Withholding Taxes. The Participant shall be required to pay to the Company, and the Company shall have the right and is hereby authorized to withhold, from any cash, shares of Common Stock, other securities or other property deliverable in respect of the RSUs or from any compensation or other amounts owing to the Participant, the amount (in cash, Common Stock, other securities or other property) of any required withholding taxes in respect of the RSUs, and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such withholding and taxes. Regardless of the amount withheld or reported, the Participant is solely responsible for all taxes in respect of the Restricted Stock Unit Award (including taxes on imputed compensation), except for the Company’s share of applicable employment taxes. In addition, the Committee may, in its sole discretion, permit the Participant to satisfy, in whole or in part, the foregoing withholding liability (but no more than the withholding liability calculated using the highest marginal tax rate) by (a) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) owned by the Participant having a Fair Market Value equal to such withholding liability or (b) having the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable upon settlement of the RSUs a number of shares with a Fair Market Value equal to such withholding liability. The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. If no election is made by the Participant, the Company will withhold shares of Common Stock to satisfy the minimum statutory required tax withholding. 9.Impact on Other Benefits. The RSUs and any underlying shares of Common Stock, and the income from and value of the same (either on the Award Date or at the time any RSUs become vested and/or settled), shall not be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan. 10.Administration. The Committee shall have full authority and discretion (subject only to the express provisions of the Plan) to decide all matters relating to the administration and interpretation of this Agreement. All such Committee determinations shall be final, conclusive and binding upon the Company, the Participant and any and all interested parties. 11.Funding. Dividends and distributions with respect to the RSUs shall be paid directly by the Company. The Company shall not be required to fund or otherwise segregate assets to be used for payment of these amounts under the Plan, and all obligations of the Company with respect to such amounts under the Plan shall remain subject to the claims of the Company’s general creditors. 12.No Right to Continued Employment; No Waiver. This grant does not constitute an employment contract. Nothing in the Plan or this Agreement shall (a) confer upon the Participant the right to continue to serve as a director or officer to, or to continue as an employee or service provider of, the Company or any of its Affiliates for the length of the vesting period set forth in Section 3 above or for any portion thereof or (b) be deemed to be a modification or waiver of the terms and conditions set forth in any written employment agreement for the Participant that has been approved, ratified or confirmed by the Board of Directors of the Company (the “Board”) or the Committee. The failure of either party to enforce any term of this Agreement shall not constitute a waiver of any rights or deprive the party of the right to insist thereafter upon strict adherence to that or any other term of this Agreement, nor shall a waiver of any breach of this Agreement constitute a waiver of any preceding or succeeding breach. 13.Clawback. The Participant acknowledges and agrees that the Restricted Stock Unit Award is subject to (a) the clawback and forfeiture provisions of Section 14(u) of the Plan, (b) the Company’s Policy for Recoupment of Incentive Compensation and (c) any subsequent clawback or forfeiture policy adopted by the Board or the Committee that is communicated to the Participant or that is consistent with applicable law, whether the Restricted Stock Unit Award was granted before or after the effective date of any such clawback or forfeiture policy. Consistent with Section 14(u) of the Plan, the Committee may, in its sole discretion, cancel the Restricted Stock Unit Award if the Participant, without the consent of the Company, while employed by or providing services to the Company or any Affiliate or after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement or otherwise has engaged in or engages in any Detrimental Activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. If the Committee determines, in its sole discretion, that the Participant has engaged in or engages in any activity referred to in the preceding sentence, the Committee may require the Participant to forfeit any gain realized on the vesting of the Restricted Stock Unit Award and to repay the gain to the Company. In addition, if the Participant receives any amount in excess of what the Participant should have received under the terms of the Restricted Stock Unit Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the Participant agrees to repay any such excess amount to the Company. 14.Bound by Plan. The Restricted Stock Unit Award has been granted subject to the terms and conditions of the Plan, a copy of which has been provided to the Participant and which the Participant acknowledges having received and reviewed. Any conflict between this Agreement and the Plan shall be decided in favor of the provisions of the Plan. Any conflict between this Agreement and the terms of a written employment agreement for the Participant that has been approved, ratified or confirmed by the Board or the Committee shall be decided in favor of the provisions of such employment agreement. This Agreement represents the entire agreement between the parties and supersedes all prior and contemporaneous agreements and understandings relative to the same subject matter. The covenants contained in this Agreement (including any attachments) are intended to co-exist with and are not affected by any covenants contained in other agreements to which any of the parties hereto are or may become parties, are independently enforceable and do not supersede such other covenants. This Agreement is not intended to and does not amend, alter, suspend, discontinue, cancel or terminate any other award agreement executed by Participant and the Company. This Agreement may not be amended, altered, suspended, discontinued, cancelled or terminated in any manner that would materially and adversely affect the rights of the Participant except by a written agreement executed by the Participant and the Company. 15.Securities Laws. The Participant agrees that the obligation of the Company to issue shares of Common Stock upon vesting of the Restricted Stock Unit Award shall also be subject, as conditions precedent, to compliance with applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, state securities or corporation laws, rules and regulations under any of the foregoing and applicable requirements of any securities exchange upon which the Company’s securities shall be listed. 16.Electronic Delivery. By accepting the Restricted Stock Unit Award, the Participant hereby consents to the electronic delivery of all documents, including prospectuses, annual reports and other information required to be delivered by Securities and Exchange Commission rules. This consent may be revoked in writing by the Participant at any time upon three (3) business days’ notice to the Company, in which case all documents, including subsequent prospectuses, annual reports and other information, will be delivered in hard copy to the Participant. 17.Force and Effect. The various provisions of this Agreement are severable in their entirety. Any determination of invalidity or unenforceability of any one provision shall have no effect on the continuing force and effect of the remaining provisions. 18.Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. For purposes of litigating any dispute that arises under this Agreement, unless otherwise provided in a written employment agreement or letter, arbitration agreement or severance agreement and release executed by the parties, the parties hereby submit to and consent to the jurisdiction of the State of Ohio and agree that such litigation shall be conducted in the courts of Franklin County in the State of Ohio, or the federal courts for the Southern District of Ohio, where the grant of the Restricted Stock Unit Award is made and/or to be performed. 19.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Furthermore, delivery of a copy of a counterpart signature by facsimile or electronic transmission shall constitute a valid and binding execution and delivery of this Agreement, and such copy shall constitute an enforceable original document. 20.Electronic Signature. This Agreement may be executed and exchanged by facsimile or electronic mail transmission and the facsimile or electronic mail copies of each party’s respective signature will be binding as if the same were an original signature. This Agreement may also be executed through the use of electronic signature, which each party acknowledges is a lawful means of obtaining signatures in the United States. Each party agrees that its electronic signature is the legal equivalent of its manual signature on this Agreement. Each party further agrees that its use of a key pad, mouse or other device to select an item, button, icon or similar act/action, regarding any agreement, acknowledgement, consent terms, disclosures or conditions constitutes its signature, acceptance and agreement as if actually signed by such party in writing. Furthermore, to the extent applicable, all references to signatures in this Agreement may be satisfied by procedures that the Company or a third party designated by the Company has established or may establish for an electronic signature system, and the Participant’s electronic signature shall be the same as, and shall have the same force and effect as, such Participant’s written signature. 21.Data Privacy. The Participant agrees and acknowledges that by accepting the Restricted Stock Unit Award, the Participant (a) consents to the collection, use and transfer, in electronic or other form, of any of the Participant’s personal data that is necessary or appropriate to facilitate the implementation, administration and management of the Restricted Stock Unit Award, this Agreement and the Plan, (b) understands that the Company may, for purposes of implementing, administering and managing the Plan, hold certain personal information about the Participant, including, without limitation, the Participant’s name, home address, telephone number, date of birth, social security number or other identification number, salary, nationality, job title, and details of all awards or entitlements to awards granted to the Participant under the Plan or otherwise (“Personal Data”), (c) understands that Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, including any broker with whom the shares of Common Stock issued upon vesting or settlement of the Restricted Stock Unit Award may be deposited, and that these recipients may be located in the United States or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the United States, (d) waives, solely for purposes of implementing, administering and managing the RSUs and the Plan, any data privacy rights that the Participant may have with respect to the Personal Data, and (e) authorizes the Company, its Affiliates and its agents, to store and transmit such Personal Data and related information in electronic form. The Participant understands that the Participant is providing consent under this Section 21 on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke consent, the Participant’s employment status or service with the Company will not be affected; the only consequence of the Participant’s refusing or withdrawing consent is that the Company would not be able to grant the Restricted Stock Unit Award or other awards to the Participant or implement, administer or maintain such awards. 22.Successors. This Agreement shall be binding and inure to the benefit of the successors, assigns and heirs of the respective parties. 23.Notices. Notices and communications under this Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to The Wendy’s Company, One Dave Thomas Boulevard, Dublin, Ohio 43017, Attention: Corporate Secretary, or any other address designated by the Company in a written notice to the Participant. Notices to the Participant will be directed to the address of the Participant then currently on file with the Company, or at any other address given by the Participant in a written notice to the Company. 24.Validity of Agreement. This Agreement shall be valid, binding and effective upon the Company and the Participant as of the date the Participant accepts and agrees to the Agreement, so long as such acceptance is received by the Company by the deadline and in the manner prescribed by the Company and communicated to the Participant. If the Participant fails to accept and agree to this Agreement on or prior to such date and in the manner prescribed by the Company and communicated to the Participant, this Agreement will not be binding and enforceable, the Participant shall have no rights and interests pursuant to this Agreement, including specifically the RSUs evidenced by this Agreement shall be forfeited, and neither the Participant nor the Participant’s heirs, executors, administrators and successors shall have any rights with respect thereto. 25.Section 409A. If any provision of this Agreement could cause the application of an accelerated or additional tax under Section 409A of the Code upon the vesting or settlement of the Restricted Stock Unit Award (or any portion thereof), such provision shall be restructured, to the minimum extent possible, in a manner determined by the Company (and reasonably acceptable to the Participant) that does not cause such an accelerated or additional tax. It is intended that this Agreement shall be exempt from Section 409A of the Code or comply with the requirements to avoid tax under Section 409A of the Code, as described in Section 14(t) of the Plan. 26.No Company Advice. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan or the Participant’s acquisition or sale of the shares of Common Stock. The Participant should consult with his or her personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan. [Remainder of page intentionally left blank.] IN WITNESS WHEREOF, the Company, by a duly authorized officer thereof, has caused this Restricted Stock Unit Award Agreement to be executed as of the date hereof. THE WENDY’S COMPANY By: Name: Title: --- ## RESTRICTED STOCK UNIT AWARD AGREEMENT (CLIFF VESTING) SEC source: [twc_ex106xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex106xq2-26.htm) EXHIBIT 10.6 RESTRICTED STOCK UNIT AWARD AGREEMENT UNDER THE WENDY’S COMPANY 2020 OMNIBUS AWARD PLAN RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”), made as of _____________, 20___, by and between The Wendy’s Company (the “Company”) and __________________ (the “Participant”): WHEREAS, the Company maintains The Wendy’s Company 2020 Omnibus Award Plan (the “Plan”) under which the Compensation and Human Capital Committee of the Company’s Board of Directors or a subcommittee thereof (the “Committee”) may, among other things, award shares of the Company’s Common Stock, to such eligible persons under the Plan as the Committee may determine, subject to terms, conditions or restrictions as the Committee may deem appropriate; and WHEREAS, pursuant to the Plan, the Committee has awarded to the Participant a restricted stock unit award conditioned upon the execution by the Company and the acceptance by the Participant of a Restricted Stock Unit Award Agreement setting forth all the terms and conditions applicable to such award in accordance with Delaware law. NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereby agree as follows: 1.Defined Terms. Except as otherwise specifically provided herein, capitalized terms used herein shall have the meanings attributed thereto in the Plan. 2.Award of Restricted Stock Units. Subject to the terms of the Plan and this Agreement, the Committee hereby awards to the Participant a restricted stock unit award (the “Restricted Stock Unit Award”) on _____________, 20___ (the “Award Date”) covering __________ shares of Common Stock (the “RSUs”). Each RSU represents the right to receive payment of one (1) share of Common Stock as of the date the RSU is settled, to the extent the RSU is vested, subject to the terms of the Plan and this Agreement. 3.Vesting and Settlement. Subject to the Participant’s continued employment with the Company and its Subsidiaries (other than as set forth in Section 6 below), all of the RSU’s shall vest and become nonforfeitable on _______________ (the “Vesting Date”). 3.4.Promptly after the Vesting Date (but in no event later than the last day of the calendar year in which the Vesting Date occurs), the Company shall distribute to the Participant one (1) share of Common Stock for each vested RSU. 4.Dividend Equivalent Rights. Each RSU shall also have a dividend equivalent right (a “Dividend Equivalent Right”). Each Dividend Equivalent Right represents the right to receive all of the ordinary cash dividends that are or would be payable with respect to the RSUs. With respect to each Dividend Equivalent Right, any such cash dividends shall be converted into additional RSUs based on the Fair Market Value of a share of Common Stock on the date such dividend is paid. Such additional RSUs shall be subject to the same terms and conditions applicable to the RSU to which the Dividend Equivalent Right relates, including, without limitation, the restrictions on transfer, forfeiture, vesting and settlement provisions contained in this Agreement. In the event that an RSU is forfeited as provided in Section 6 below, then the related Dividend Equivalent Right shall also be forfeited. 5.Transferability. The RSUs shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or by the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company or an Affiliate; provided that the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance. The shares of Common Stock acquired by the Participant upon settlement of the RSUs may not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant, unless in compliance with all applicable securities laws as set forth in Section 15 below. The Participant shall not be deemed for any purpose to be the owner of any shares of Common Stock subject to the RSUs prior to settlement of any vested RSUs. 6.Effect of Termination of Employment or Service. (a)Change in Control or Death. In the event of (i) the termination of the Participant’s employment or service to the Company and its Subsidiaries by the Company other than for Cause (and other than due to death), or by the Participant for Good Reason, in each case within twelve (12) months following a Change in Control, or (ii) the termination of the Participant’s employment or service due to death, outstanding RSUs hereby granted to the Participant shall become fully vested as of the date of such termination of employment or service, and shall promptly thereafter (and, in any event, no later than the last day of the calendar year in which such vesting occurs) be settled by distribution to the Participant of one (1) share of Common Stock for each vested RSU (subject to the six-month delay required by Section 14(t)(ii) of the Plan for amounts that are subject to Section 409A of the Code, if the Participant is a “specified employee” at the time of separation). (b)Disability. In the event of the termination of the Participant’s employment or service due to Disability, outstanding RSUs hereby granted to the Participant shall continue to vest according to the vesting schedule set forth in Section 3 as if the Participant remained employed on the Vesting Date; provided that if such termination occurs within twelve (12) months following a Change in Control, payment shall be made at the time prescribed by Section 6(a). (c)Severance. In the event the Participant’s employment or service to the Company and its Subsidiaries are terminated by the Company prior to the date the RSUs would otherwise vest in accordance with Section 3 above other than for Cause (and other than following a Change in Control or in connection with the Participant’s death or Disability, each as described in further detail in Section 6(a) or (b)), if the Participant is subject to an employment letter with the Company or its Subsidiaries, is in a class of employees subject to the Company’s Executive Severance Pay Policy, or is in a class of employees subject to another severance policy adopted by the Company or its Subsidiaries, and such employment letter or policy addresses the treatment of the RSUs, the RSUs shall vest as set forth under such employment letter or policy, as applicable. (d)Retirement. In the event of the Participant’s Retirement (as defined below), any unvested RSUs on the date of such Retirement shall continue to vest according to the vesting schedule set forth in Section 3 as if the Participant remained employed on the Vesting Date; provided that if the Participant’s separation from service occurs within twelve (12) months following a Change in Control, payment shall be made at the time prescribed by Section 6(a). For purposes of this Award, “Retirement” shall mean the Participant’s voluntary termination of the Participant’s employment or service with the Company and its Subsidiaries at a time that Cause does not exist (A) after attaining age sixty (60), (B) after having at least ten (10) years of employment or service with the Company or its Subsidiaries, (C) as of a date specified (or such other date as agreed to by the Company) in a written notice of proposed Retirement provided by the Participant to the Company at least six (6) months before the proposed Retirement date and (D) the Participant otherwise complying with the Company’s then-current retirement policy. (e)Other Voluntary Termination. Upon voluntary termination of the Participant’s employment or service with the Company and any of its Subsidiaries by the Participant, other than for Good Reason following a Change in Control as set forth in Section 6(a) or for Retirement as set forth in Section 6(c), the Restricted Stock Unit Award, to the extent not already vested, shall be forfeited, unless otherwise determined by the Committee in its sole discretion. 7.Beneficiary. The Participant may designate in writing one or more beneficiaries to receive the stock certificates (or, if applicable, a notice evidencing book entry notation) representing those RSUs that become vested and nonforfeitable and settled upon the Participant’s death. The Participant has the right to change any such beneficiary designation at will. 8.Withholding Taxes. The Participant shall be required to pay to the Company, and the Company shall have the right and is hereby authorized to withhold, from any cash, shares of Common Stock, other securities or other property deliverable in respect of the RSUs or from any compensation or other amounts owing to the Participant, the amount (in cash, Common Stock, other securities or other property) of any required withholding taxes in respect of the RSUs, and to take such other action as may be necessary in the opinion of the Committee or the Company to satisfy all obligations for the payment of such withholding and taxes. Regardless of the amount withheld or reported, the Participant is solely responsible for all taxes in respect of the Restricted Stock Unit Award (including taxes on imputed compensation), except for the Company’s share of applicable employment taxes. In addition, the Committee may, in its sole discretion, permit the Participant to satisfy, in whole or in part, the foregoing withholding liability (but no more than the withholding liability calculated using the highest marginal tax rate) by (a) the delivery of shares of Common Stock (which are not subject to any pledge or other security interest) owned by the Participant having a Fair Market Value equal to such withholding liability or (b) having the Company withhold from the number of shares of Common Stock otherwise issuable or deliverable upon settlement of the RSUs a number of shares with a Fair Market Value equal to such withholding liability. The obligations of the Company under this Agreement will be conditional on such payment or arrangements, and the Company will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the Participant. If no election is made by the Participant, the Company will withhold shares of Common Stock to satisfy the minimum statutory required tax withholding. 9.Impact on Other Benefits. The RSUs and any underlying shares of Common Stock, and the income from and value of the same (either on the Award Date or at the time any RSUs become vested and/or settled), shall not be taken into account in determining any benefits under any pension, retirement, profit sharing, group insurance or other benefit plan of the Company except as otherwise specifically provided in such other plan. 10.Administration. The Committee shall have full authority and discretion (subject only to the express provisions of the Plan) to decide all matters relating to the administration and interpretation of this Agreement. All such Committee determinations shall be final, conclusive and binding upon the Company, the Participant and any and all interested parties. 11.Funding. Dividends and distributions with respect to the RSUs shall be paid directly by the Company. The Company shall not be required to fund or otherwise segregate assets to be used for payment of these amounts under the Plan, and all obligations of the Company with respect to such amounts under the Plan shall remain subject to the claims of the Company’s general creditors. 12.No Right to Continued Employment; No Waiver. This grant does not constitute an employment contract. Nothing in the Plan or this Agreement shall (a) confer upon the Participant the right to continue to serve as a director or officer to, or to continue as an employee or service provider of, the Company or any of its Affiliates for the length of the vesting period set forth in Section 3 above or for any portion thereof or (b) be deemed to be a modification or waiver of the terms and conditions set forth in any written employment agreement for the Participant that has been approved, ratified or confirmed by the Board of Directors of the Company (the “Board”) or the Committee. The failure of either party to enforce any term of this Agreement shall not constitute a waiver of any rights or deprive the party of the right to insist thereafter upon strict adherence to that or any other term of this Agreement, nor shall a waiver of any breach of this Agreement constitute a waiver of any preceding or succeeding breach. 13.Clawback. The Participant acknowledges and agrees that the Restricted Stock Unit Award is subject to (a) the clawback and forfeiture provisions of Section 14(u) of the Plan, (b) the Company’s Policy for Recoupment of Incentive Compensation and (c) any subsequent clawback or forfeiture policy adopted by the Board or the Committee that is communicated to the Participant or that is consistent with applicable law, whether the Restricted Stock Unit Award was granted before or after the effective date of any such clawback or forfeiture policy. Consistent with Section 14(u) of the Plan, the Committee may, in its sole discretion, cancel the Restricted Stock Unit Award if the Participant, without the consent of the Company, while employed by or providing services to the Company or any Affiliate or after termination of such employment or service, violates a non-competition, non-solicitation or non-disclosure covenant or agreement or otherwise has engaged in or engages in any Detrimental Activity that is in conflict with or adverse to the interest of the Company or any Affiliate, including fraud or conduct contributing to any financial restatements or irregularities, as determined by the Committee in its sole discretion. If the Committee determines, in its sole discretion, that the Participant has engaged in or engages in any activity referred to in the preceding sentence, the Committee may require the Participant to forfeit any gain realized on the vesting of the Restricted Stock Unit Award and to repay the gain to the Company. In addition, if the Participant receives any amount in excess of what the Participant should have received under the terms of the Restricted Stock Unit Award for any reason (including, without limitation, by reason of a financial restatement, mistake in calculations or other administrative error), then the Participant agrees to repay any such excess amount to the Company. 14.Bound by Plan. The Restricted Stock Unit Award has been granted subject to the terms and conditions of the Plan, a copy of which has been provided to the Participant and which the Participant acknowledges having received and reviewed. Any conflict between this Agreement and the Plan shall be decided in favor of the provisions of the Plan. Any conflict between this Agreement and the terms of a written employment agreement for the Participant that has been approved, ratified or confirmed by the Board or the Committee shall be decided in favor of the provisions of such employment agreement. This Agreement represents the entire agreement between the parties and supersedes all prior and contemporaneous agreements and understandings relative to the same subject matter. The covenants contained in this Agreement (including any attachments) are intended to co-exist with and are not affected by any covenants contained in other agreements to which any of the parties hereto are or may become parties, are independently enforceable and do not supersede such other covenants. This Agreement is not intended to and does not amend, alter, suspend, discontinue, cancel or terminate any other award agreement executed by Participant and the Company. This Agreement may not be amended, altered, suspended, discontinued, cancelled or terminated in any manner that would materially and adversely affect the rights of the Participant except by a written agreement executed by the Participant and the Company. 15.Securities Laws. The Participant agrees that the obligation of the Company to issue shares of Common Stock upon vesting of the Restricted Stock Unit Award shall also be subject, as conditions precedent, to compliance with applicable provisions of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, state securities or corporation laws, rules and regulations under any of the foregoing and applicable requirements of any securities exchange upon which the Company’s securities shall be listed. 16.Electronic Delivery. By accepting the Restricted Stock Unit Award, the Participant hereby consents to the electronic delivery of all documents, including prospectuses, annual reports and other information required to be delivered by Securities and Exchange Commission rules. This consent may be revoked in writing by the Participant at any time upon three (3) business days’ notice to the Company, in which case all documents, including subsequent prospectuses, annual reports and other information, will be delivered in hard copy to the Participant. 17.Force and Effect. The various provisions of this Agreement are severable in their entirety. Any determination of invalidity or unenforceability of any one provision shall have no effect on the continuing force and effect of the remaining provisions. 18.Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. For purposes of litigating any dispute that arises under this Agreement, unless otherwise provided in a written employment agreement or letter, arbitration agreement or severance agreement and release executed by the parties, the parties hereby submit to and consent to the jurisdiction of the State of Ohio and agree that such litigation shall be conducted in the courts of Franklin County in the State of Ohio, or the federal courts for the Southern District of Ohio, where the grant of the Restricted Stock Unit Award is made and/or to be performed. 19.Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Furthermore, delivery of a copy of a counterpart signature by facsimile or electronic transmission shall constitute a valid and binding execution and delivery of this Agreement, and such copy shall constitute an enforceable original document. 20.Electronic Signature. This Agreement may be executed and exchanged by facsimile or electronic mail transmission and the facsimile or electronic mail copies of each party’s respective signature will be binding as if the same were an original signature. This Agreement may also be executed through the use of electronic signature, which each party acknowledges is a lawful means of obtaining signatures in the United States. Each party agrees that its electronic signature is the legal equivalent of its manual signature on this Agreement. Each party further agrees that its use of a key pad, mouse or other device to select an item, button, icon or similar act/action, regarding any agreement, acknowledgement, consent terms, disclosures or conditions constitutes its signature, acceptance and agreement as if actually signed by such party in writing. Furthermore, to the extent applicable, all references to signatures in this Agreement may be satisfied by procedures that the Company or a third party designated by the Company has established or may establish for an electronic signature system, and the Participant’s electronic signature shall be the same as, and shall have the same force and effect as, such Participant’s written signature. 21.Data Privacy. The Participant agrees and acknowledges that by accepting the Restricted Stock Unit Award, the Participant (a) consents to the collection, use and transfer, in electronic or other form, of any of the Participant’s personal data that is necessary or appropriate to facilitate the implementation, administration and management of the Restricted Stock Unit Award, this Agreement and the Plan, (b) understands that the Company may, for purposes of implementing, administering and managing the Plan, hold certain personal information about the Participant, including, without limitation, the Participant’s name, home address, telephone number, date of birth, social security number or other identification number, salary, nationality, job title, and details of all awards or entitlements to awards granted to the Participant under the Plan or otherwise (“Personal Data”), (c) understands that Personal Data may be transferred to any third parties assisting in the implementation, administration and management of the Plan, including any broker with whom the shares of Common Stock issued upon vesting or settlement of the Restricted Stock Unit Award may be deposited, and that these recipients may be located in the United States or elsewhere, and that the recipient’s country may have different data privacy laws and protections than the United States, (d) waives, solely for purposes of implementing, administering and managing the RSUs and the Plan, any data privacy rights that the Participant may have with respect to the Personal Data, and (e) authorizes the Company, its Affiliates and its agents, to store and transmit such Personal Data and related information in electronic form. The Participant understands that the Participant is providing consent under this Section 21 on a purely voluntary basis. If the Participant does not consent, or if the Participant later seeks to revoke consent, the Participant’s employment status or service with the Company will not be affected; the only consequence of the Participant’s refusing or withdrawing consent is that the Company would not be able to grant the Restricted Stock Unit Award or other awards to the Participant or implement, administer or maintain such awards. 22.Successors. This Agreement shall be binding and inure to the benefit of the successors, assigns and heirs of the respective parties. 23.Notices. Notices and communications under this Agreement must be in writing and either personally delivered or sent by registered or certified United States mail, return receipt requested, postage prepaid. Notices to the Company must be addressed to The Wendy’s Company, One Dave Thomas Boulevard, Dublin, Ohio 43017, Attention: Corporate Secretary, or any other address designated by the Company in a written notice to the Participant. Notices to the Participant will be directed to the address of the Participant then currently on file with the Company, or at any other address given by the Participant in a written notice to the Company. 24.Validity of Agreement. This Agreement shall be valid, binding and effective upon the Company and the Participant as of the date the Participant accepts and agrees to the Agreement, so long as such acceptance is received by the Company by the deadline and in the manner prescribed by the Company and communicated to the Participant. If the Participant fails to accept and agree to this Agreement on or prior to such date and in the manner prescribed by the Company and communicated to the Participant, this Agreement will not be binding and enforceable, the Participant shall have no rights and interests pursuant to this Agreement, including specifically the RSUs evidenced by this Agreement shall be forfeited, and neither the Participant nor the Participant’s heirs, executors, administrators and successors shall have any rights with respect thereto. 25.Section 409A. If any provision of this Agreement could cause the application of an accelerated or additional tax under Section 409A of the Code upon the vesting or settlement of the Restricted Stock Unit Award (or any portion thereof), such provision shall be restructured, to the minimum extent possible, in a manner determined by the Company (and reasonably acceptable to the Participant) that does not cause such an accelerated or additional tax. It is intended that this Agreement shall be exempt from Section 409A of the Code or comply with the requirements to avoid tax under Section 409A of the Code, as described in Section 14(t) of the Plan. 26.No Company Advice. The Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Participant’s participation in the Plan or the Participant’s acquisition or sale of the shares of Common Stock. The Participant should consult with his or her personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan. [Remainder of page intentionally left blank.] IN WITNESS WHEREOF, the Company, by a duly authorized officer thereof, has caused this Restricted Stock Unit Award Agreement to be executed as of the date hereof. THE WENDY’S COMPANY By: Name: Title: --- ## CEO CERTIFICATION PURSUANT TO SECTION 302 SEC source: [twc_ex311xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex311xq2-26.htm) EXHIBIT 31.1 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF THE WENDY’S COMPANY, PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Robert D. Wright, certify that: 1.I have reviewed this quarterly report on Form 10-Q of The Wendy’s Company; 2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Date: August 7, 2026 /s/ Robert D. Wright Robert D. Wright President and Chief Executive Officer --- ## CFO CERTIFICATION PURSUANT TO SECTION 302 SEC source: [twc_ex312xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex312xq2-26.htm) EXHIBIT 31.2 CERTIFICATION OF THE CHIEF FINANCIAL OFFICER OF THE WENDY’S COMPANY, PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Steven W. Cirulis, certify that: 1.I have reviewed this quarterly report on Form 10-Q of The Wendy’s Company; 2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; 4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and 5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): (a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and (b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. Date: August 7, 2026 /s/ Steven W. Cirulis Steven W. Cirulis Chief Financial Officer and Chief Strategy Officer --- ## CEO AND CFO CERTIFICATION PURSUANT TO SECTION 906 SEC source: [twc_ex321xq2-26.htm](https://www.sec.gov/Archives/edgar/data/30697/000003069726000116/twc_ex321xq2-26.htm) EXHIBIT 32.1 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned officers of The Wendy’s Company, a Delaware corporation (the “Company”), does hereby certify, to the best of such officer’s knowledge, that in connection with the Quarterly Report on Form 10-Q of the Company for the quarter ended June 28, 2026 (the “Form 10-Q”): 1.the Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and 2.the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company. Date: August 7, 2026 /s/ Robert D. Wright Robert D. Wright President and Chief Executive Officer Date: August 7, 2026 /s/ Steven W. Cirulis Steven W. Cirulis Chief Financial Officer and Chief Strategy Officer