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Wendy's WEN Franchise rental expense

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Segments

By segment

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Global Real Estate & Development$28.04M-14.1%

Other financials

Income statement

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Revenue$570.6M+1.7%
Gross profit$363.3M-0.3%
Operating income$79.3M-24.0%
Net income$32.6M-40.8%
EPS (diluted)$0.17-41.4%

Balance sheet

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Cash & equivalents$394.8M+19.6%
Total debt$4.1B-0.4%
Total equity$120.5M+6.7%
Total assets$4.9B-0.2%

Cash flow

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Operating cash flow$100.6M+66.0%
CapEx$19.6M-8.5%
Free cash flow$81.0M+107%

Valuation

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Market cap$1.46B-25.4%
Enterprise value$5.14B-10.1%
P/E11.6×+1.4×
P/S0.7×-0.2×

Profitability

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Gross margin63%-2.1pp
Operating margin13.6%-3.4pp
Net margin5.7%-2.9pp
FCF margin12%+0.4pp

Returns & leverage

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Return on equity108%+8.7pp
Debt / equity33.8×-2.4×
Current ratio1.9×+0.5×

Where this comes from

Reported directly by Wendy's in its filing.

Tagged under the XBRL concept wen:FranchiseRentalExpense.

The source filing: Wendy's’s 10-Q, filed August 7, 2026.

Filed
Aug 7, 2026, 4:15 PM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q3 2026
Accession
0000030697-26-000116
Line itemThree Months Ended / June 28,2026Three Months Ended / June 29,2025Six Months Ended / June 28,2026Six Months Ended / June 29,2025
Costs and expenses:
Cost of sales207,275196,521408,324384,690
Franchise support and other costs22,56617,06944,55733,665
Franchise rental expense28,03932,63058,21563,331
Advertising funds expense127,879111,374236,494212,902
General and administrative66,16159,485139,004127,689
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)38,06136,99078,63673,539
Amortization of cloud computing arrangements4,5774,0569,3398,223

Item 1. Financial Statements.

FAQ

What is Wendy's's franchise rental expense?
Wendy's (WEN) reported franchise rental expense of $28.04M in Q2 2026.
How has Wendy's's franchise rental expense changed year-over-year?
Wendy's's franchise rental expense decreased by 14.1% year-over-year, from $32.63M to $28.04M.
What is the long-term trend for Wendy's's franchise rental expense?
Over 4 years (2021 to 2025), Wendy's's franchise rental expense has grown at a -1.3% compound annual growth rate (CAGR), from $132.41M to $125.77M.
What does franchise rental expense mean?
This represents the costs associated with leasing properties that are subsequently subleased or operated by franchisees. It reflects the company's role as a master lessor within its real estate strategy. Investors track this to evaluate the company's real estate leverage and the profitability of its property-based franchise model.

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