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How Wendy's (WEN) makes money
Wendy's (WEN) made $547M of revenue in the third quarter 2026 (Q3 2026), -0.5% from a year earlier. Sales brought in $235M (43%); Franchise royalty revenue and fees brought in $142M (26%); Advertising funds revenue brought in $111M (20%). Of every dollar of revenue, 10¢ was left as operating profit, 3¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q3 2026
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Sales | $235M | 42.9% | -2% | +0.7% |
| Franchise royalty revenue and fees | $142M | 26.0% | -5% | -6% |
| ↳ Franchise royalty revenue | $119M | 21.8% | -3% | -7% |
| ↳ Franchise fees | $22.9M | 4.2% | -13% | -5% |
| Advertising funds revenue | $111M | 20.4% | -13% | +4% |
| Franchise rental income | $58.5M | 10.7% | +10% | +2% |
Where each dollar of revenue goes
| Line | Q3 2026 | % of revenue |
|---|---|---|
| Revenue | $547M | 100.0% |
| Operating profit | $55.8M | 10.2% |
| Income tax | $10.3M | 1.9% |
| Net earnings | $15.1M | 2.8% |
| Operating cash flow | $79.0M | 14.4% |
| Free cash flow | $61.7M | 11.3% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q3 2026 | $547M | -0.5% |
| Q2 2026 | $571M | +2% |
| Q1 2026 | $541M | +3% |
| Q4 2025 | $543M | -6% |
| Q3 2025 | $550M | -3% |
| Q2 2025 | $561M | -2% |
| Q1 2025 | $523M | -2% |
From Wendy's 10-Q filed Nov 5, 2026 (on EDGAR).
Questions
How does Wendy's make money?
Wendy's (WEN) made $547M of revenue in the third quarter 2026 (Q3 2026), -0.5% from a year earlier. Sales brought in $235M (43%); Franchise royalty revenue and fees brought in $142M (26%); Advertising funds revenue brought in $111M (20%). Of every dollar of revenue, 10¢ was left as operating profit, 3¢ was left as net earnings.
What is Wendy's biggest business?
Sales: $235M in the third quarter 2026, 43% of revenue, +0.7% from a year earlier.
What is Wendy's profit margin?
Net earnings were $15.1M, 2.8% of revenue, in the third quarter 2026; the operating margin was 10.2%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.