The Wendy's Company, on August 9, 2023, announced its unaudited results for the second quarter ending July 2, 2023. The company showcased significant sales and profit growth, with a notable increase in the US company-operated restaurant margin. The breakfast and late-night segments experienced substantial growth, and the company's digital strength persisted. Wendy's also reported 80 global restaurant openings in the first half of the year. The company's president and CEO, Todd Penegor, expressed confidence in achieving their short and long-term growth outlooks. Todd Penegor also highlighted the company's progress against their strategic growth pillars, emphasizing the significant profit expansion supported by strong same-restaurant sales momentum.
Operational Highlights:
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Open account Try demo Download mobile app Download mobile app- Systemwide sales growth: US at 6.1%, International at 12.7%, and Global at 6.9%.
- Same-restaurant sales growth: US at 4.9%, International at 7.2%, and Global at 5.1%.
- Systemwide sales: US at $3,185 millions, International at $461 millions, and Global at $3,646M.
- Restaurant openings: Wendy opened 80 new global restaurants, but in net figures it was 14 restaurants in the US and 14 restaurants internationally
Financial Highlights:
- Total revenues increased to $5,616M, a 4.4% growth.
- US company-operated restaurant margin increased by 2.3%.
- Operating profit rose to $1,093M, a 13.5% growth.
- Net income surged to $596M, a 23.7% increase.
- Adjusted EBITDA stood at $1,445M, marking an 8.7% growth.
- Reported EPS was $0.28, a 27.3% growth.
- Free cash flow was reported at $1,335M, a 40.2% increase.
For the year 2023, The Wendy's Company has provided the following projections:
- Global systemwide sales growth is expected to be between 6 to 8%.
- Adjusted EPS are projected to be between $0.95 to $1.00.
- Cash flows from operations are anticipated to be between $340 to $360 million.
- Capital expenditures are expected to range from $75 to $85 million.
- Free cash flow is projected to be between $265 to $275 million.
WEN.US - Wendy's shares have essentially been moving in a sideways trend since 2019, limited within the range of 19.10 and 24.38 dollars per share. After announcing the results, the stock price is down 0.41% in pre-market trading, source xStation 5
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