Investing.com -- Wendy's Co (NASDAQ: WEN) reported first-quarter results that exceeded Wall Street expectations, sending shares up 4.3% premarket despite ongoing challenges in its U.S. business.

The fast-food chain posted adjusted earnings per share of $0.12, beating the analyst consensus of $0.10. Revenue reached $540.6 million, surpassing estimates of $520.48 million and up 3.3% from the prior year. However, global systemwide sales fell 5.5% to $3.2 billion, driven by a 7.8% decline in U.S. same-restaurant sales. International systemwide sales grew 6.0%, providing a bright spot in the quarter.

The company reaffirmed its full-year 2026 outlook, projecting adjusted earnings per share of $0.56 to $0.60. The midpoint of $0.58 aligns with analyst consensus. Wendy's expects approximately flat global systemwide sales growth and adjusted EBITDA of $460 million to $480 million for the year.

"We are taking decisive action to strengthen the Wendy's system and improve performance," said Ken Cook, Interim CEO. "While our first quarter results reflect a business in the early stages of a turnaround, we are making progress to improve our U.S. business and are confident in the direction we are heading."

U.S. Company-operated restaurant margin contracted 340 basis points to 11.4%, pressured by declining traffic, commodity inflation, and labor rate inflation. Adjusted EBITDA decreased 10.6% to $111.3 million from $124.5 million in the prior-year quarter.

Wendy's announced a franchise agreement to build up to 1,000 restaurants across China over the next 10 years. The company opened 50 net new restaurants globally during the quarter, though the U.S. saw 164 net closures. The company declared a quarterly dividend of $0.14 per share, payable June 15.