Q4 Earnings: TC Energy Strengthens, Advance Auto Beats, Wendy’s Faces Headwinds

As the financial year comes to a close, several companies have released their fourth-quarter and full-year earnings reports, providing insights into their performance and future outlook. This article reviews the earnings reports of TC Energy (TRP), Advance Auto Parts (AAP), and Wendy’s (WEN), highlighting key financial metrics and strategic initiatives. Each company, operating in distinct sectors, has navigated the challenges of the past year with varying strategies and outcomes, offering investors a comprehensive view of their financial health and operational direction.

TC Energy, a leader in the North American energy infrastructure sector, reported strong safety performance and a 15% increase in segmented earnings for the fourth quarter of 2025. The company’s focus on operational excellence and strategic capital allocation has been pivotal in driving these results.

Advance Auto Parts, a prominent player in the automotive aftermarket parts industry, exceeded expectations with a positive comparable sales growth and a significant expansion in operating income margin.

Meanwhile, Wendy’s, a global fast-food chain, reported a challenging quarter with a decline in U.S. sales but showed resilience with international growth and strategic initiatives aimed at long-term success.

Q4 Results: Earnings Beats and Sector-Specific Challenges

TC Energy reported a robust fourth quarter, with a 13% year-over-year increase in comparable EBITDA, rising to $3.0 billion from $2.6 billion, and a 15% rise in segmented earnings to $2.2 billion from $1.9 billion. Comparable earnings came in at $1.0 billion, or $0.98 per common share, compared to $1.1 billion, or $1.05 per common share, in Q4 2024. The company’s focus on safety and operational performance has led to 15 flow records across its systems in 2025.

These strong operational metrics were driven by TC Energy’s strategic emphasis on asset availability and reliability. For the full year 2025, comparable EBITDA reached $11.0 billion, up from $10.0 billion in 2024, setting a strong foundation for future growth, with 2026 guidance projecting comparable EBITDA of $11.6 to $11.8 billion.

Advance Auto Parts delivered a strong performance in the fourth quarter, with an EPS of $0.86, surpassing the expected $0.43. The company reported net sales of $2 billion, slightly above the anticipated $1.95 billion.

This positive outcome was driven by a 1.1% increase in comparable sales, reflecting the effectiveness of the company’s strategic initiatives and operational improvements. The additional week in the fiscal year contributed $132 million to net sales, highlighting the impact of calendar adjustments on financial performance.

Wendy’s faced a challenging quarter with a reported EPS of $0.16, just above the expected $0.15. Total revenues were $543 million, slightly exceeding the forecasted $537.55 million. The company experienced a decrease in U.S. same-restaurant sales, which was partially offset by international growth.

Wendy’s strategic initiatives under Project Fresh aim to address these challenges, focusing on operational improvements and menu innovation to enhance customer engagement and drive future growth.

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Section 2: Guidance and Strategic Outlook

Looking ahead, TC Energy remains optimistic about its 2026 outlook, expecting higher comparable EBITDA and EPS compared to 2025. The company anticipates capital expenditures between $6 billion and $6.5 billion, with a focus on advancing high-quality projects. TC Energy’s strategic initiatives in pipeline expansion and power generation are expected to drive sustained growth, supported by a disciplined capital allocation framework.

Advance Auto Parts has set ambitious targets for 2026, projecting a 1.0% to 2.0% growth in comparable sales and an adjusted operating income margin between 3.8% and 4.5%. The company plans to open 40 to 45 new stores and invest approximately $300 million in capital expenditures. Advance Auto Parts’ strategic focus on customer-centric initiatives and operational efficiency is expected to fuel its growth trajectory, supported by a solid balance sheet and healthy liquidity.

Wendy’s 2026 guidance reflects a cautious yet strategic approach, with expectations for flat global systemwide sales growth. The company projects adjusted EBITDA between $460 million and $480 million and adjusted earnings per share ranging from $0.56 to $0.60.

Capital expenditures and franchise development fund investments are anticipated to be between $120 million and $130 million. Wendy’s continues to prioritize its Project Fresh initiatives, aiming to strengthen its foundation and position the brand for long-term success, despite the current challenges in the U.S. market.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.