Wendy's Co Earnings Per Share Disclosure
| Year Ended | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 165,075 | $ | 194,357 | $ | 204,440 | |||||||||||
| Common stock: | |||||||||||||||||
| Weighted average basic shares outstanding | 193,406 | 204,351 | 209,486 | ||||||||||||||
| Dilutive effect of stock options and restricted shares | 626 | 1,263 | 2,048 | ||||||||||||||
| Weighted average diluted shares outstanding | 194,032 | 205,614 | 211,534 | ||||||||||||||
| Net income per share: | |||||||||||||||||
| Basic | $ | .85 | $ | .95 | $ | .98 | |||||||||||
| Diluted | $ | .85 | $ | .95 | $ | .97 | |||||||||||
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.