DUBLIN, Ohio — Wendy’s reported falling sales and profits in the United States in 2025, even as the fast-food chain continued to grow overseas, according to the company’s earnings report released Thursday.

The company said global sales across all Wendy’s restaurants totaled $14 billion for the year, down 3.5% from 2024. Sales fell more sharply in the fourth quarter, dropping 8.3% to $3.4 billion. The decline was driven mainly by weaker performance at U.S. restaurants.

Wendy’s reported net income of $165.1 million for the full year, down more than 15% from the previous year. Fourth-quarter profit fell 44% to $26.5 million.

The company said fewer customers visited U.S. locations, while higher food and labor costs also hurt profits. Wendy’s operating profit dropped 33% in the fourth quarter compared with the same period a year earlier.

Despite the slowdown in the U.S., Wendy’s said its international business continued to grow. Sales outside the United States increased 6.2% in the fourth quarter and 8.1% for the full year. The company opened 157 net new restaurants worldwide in 2025, including 121 new international locations.

“Our fourth quarter performance was in line with our expectations, reflecting the challenges we anticipated,” Interim CEO Ken Cook said in a statement. He said Wendy’s is working to improve operations at U.S. restaurants while expanding overseas.

The company said it is moving forward with its “Project Fresh” turnaround plan, which includes new value menu items and menu changes aimed at bringing customers back in 2026.

Wendy’s generated $344.5 million in cash from its operations in 2025 and returned nearly $330 million to shareholders through dividends and stock buybacks. The company declared a quarterly dividend of 14 cents per share, payable March 16.

Looking ahead, Wendy’s said it expects sales to remain about flat in 2026. The company also forecast lower profits than in recent years, reflecting continued pressure on consumer spending and restaurant traffic in the U.S.

Wendy’s is based in Dublin, Ohio, and operates more than 7,300 restaurants worldwide, most of them owned by franchisees.