Broadcast legends Ian Eagle and Clark Kellogg share hot takes on Wendy's fresh, never frozen beefDUBLIN, Ohio, March 17, 2025 /PRNewswire/ -- Wendy's® is serving up the real MVP of March Madness® with two stars of its fresh, famous beef* lineup just in time for the tournament! Now through Sunday, April 13, fans can score bracket-winning deals with Wendy's as the Official Hamburger of March Madness, including a $1 Jr. Bacon Cheeseburger or a $1 Double Stack™ with an additional purchase exclusively with the o ...

The Wendy's Company (WEN) is benefiting from solid comps growth and strength in U.S. breakfast sales and digital sales momentum. This and the emphasis on cost management and strategic pricing bode well. However, high commodity and labor costs are headwinds.Growth Drivers of WENThe company continues to impress investors with robust global same-restaurant sales growth. During the fourth quarter of fiscal 2024, same-restaurant sales at international restaurants (excluding Argentina) rose 4.9% year over year co ...

In July I wrote about Wendy’s (NASDAQ: WEN ) . I rated them a hold, and a risky one at that, citing the relatively little growth they were seeing and a dividend yield that didn’t look particularly sustainable. Since then, the price has droppedI’m Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quinc ...

Shares plans to update core menu items and launch impactful innovation to meet consumer preferences and win in fast growing segments Details increased investments in technology and operations to enhance the customer experience Outlines expectations to add 1,000 net new restaurants globally by 2028 Announces long-term financial algorithm of 3-4% annual net unit growth, 5-6% annual systemwide sales growth, and 7-8% annual adjusted EBITDA growthDUBLIN, Ohio, March 6, 2025 /PRNewswire/ -- The Wendy's Company ...

Milestone marks significant progress towards expanding the brand's global presenceDUBLIN, Ohio, Feb. 28, 2025 /PRNewswire/ -- The Wendy's Company announced today a major global growth milestone with the opening of the 500th Wendy's® restaurant in the Asia Pacific, Middle East and Africa (APMEA) region. The restaurant, located in Nagano, Japan, is owned and operated by franchisee Wendy's Japan K.K. and features the brand's new Global Next Gen design, which blends modern, innovative design with cutting-edge t ...

I am an Equity Analyst and Accountant specializing in restaurant stocks, with a solid foundation in Business Administration and Accounting, complemented by an MBA in Forensic Accounting and Controllership. As the founder of Goulart's Restaurant Stocks, I lead a company focused on analyzing restaurant stocks in the U.S. market. Our coverage spans multiple segments, including QSR, fast casual, casual dining, fine dining, and family dining. We employ advanced analytical models and specialized valuation techniq ...

JPMorgan analyst John Ivankoe gives Wendy’s Co WEN a Neutral rating, lowering the price forecast to $17 from $20.Ivankoe stresses the need for improved cash returns from new U.S. units to accelerate growth, as Wendy’s U.S. units have grown by 1.4% since 2019 but declined by 2.9% since 2014.The analyst notes that despite a dividend cut to 56 cents from $1, the stock still offers an attractive 4% dividend yield, with over $135 million payment in FY25.Capital intensity is rising from $170 million in FY24 to $2 ...

Restaurant Operations - As of December 29, 2024, Wendy's operates 7,240 restaurants globally, with 5,933 in the U.S. and 1,307 in 31 foreign countries[15][16]. - In 2024, Wendy's opened 276 new restaurants while closing an equal number, resulting in a stable total of 7,240 restaurants at year-end[23]. - Company-operated restaurants accounted for approximately 5% of the total Wendy's system as of December 29, 2024[22]. - As of December 29, 2024, Wendy's operated approximately 5% of its total system as company-operated restaurants, with the remainder being franchised[42]. - In 2024, Wendy's completed 50 Franchise Flips, 3 restaurant dispositions, and no restaurant acquisitions, compared to 99 Franchise Flips and 1 restaurant disposition in 2023[45]. - Wendy's U.S. franchisees operated 5,552 franchised restaurants across 50 states and the District of Columbia, while international franchisees operated 1,294 restaurants in 31 countries[46]. - The total restaurant count at the end of 2024 was 7,240, unchanged from 2023, with 381 Company-operated and 5,552 franchised locations in the U.S.[191]. Financial Performance - Revenue increased by 3.0% to $2.25 billion in 2024 compared to $2.18 billion in 2023[181]. - Total revenues for 2024 were $2,246.5 million, an increase of 64.9 million or 3.0% compared to 2023[186]. - Net income decreased by 4.9% to $194.4 million in 2024 compared to $204.4 million in 2023[181]. - Operating profit for 2024 was $371.4 million, a decrease of 10.6% from $382.0 million in 2023[186]. - Franchise royalty revenue increased by $16.3 million to $528.4 million, driven by a 1.7% increase in global franchise same-restaurant sales[194]. - Franchise fees rose by $17.4 million to $97.6 million, attributed to early termination fees and higher IT service fees[195]. - U.S. same-restaurant sales for Company-operated locations were flat at 0.0%, while franchised locations saw a 1.5% increase[188]. - Global same-restaurant sales increased by 1.5%, with U.S. same-restaurant sales up by 1.4% and international same-restaurant sales up by 2.8% compared to 2023[181]. Strategic Initiatives - Wendy's strategic framework focuses on driving same-restaurant sales, accelerating digital growth, improving restaurant profitability, and expanding globally[20]. - The company has invested significantly in technology, enhancing mobile apps and loyalty programs to improve customer experience and operational efficiency[31]. - Wendy's maintains a state-of-the-art research and development facility to innovate and test new products, which is critical for attracting new customers[33]. - The company plans to accelerate restaurant development in new and existing international markets using a franchise model, but may need to invest more in advertising to build brand awareness[105]. Employee Engagement and Welfare - As of December 29, 2024, Wendy's had approximately 14,500 employees, with about one-third being full-time and two-thirds part-time[60]. - Wendy's maintains a focus on employee engagement, measuring effectiveness through annual surveys and tracking turnover rates compared to industry standards[59]. - The company emphasizes a commitment to providing market-competitive pay and benefits, including medical, dental, vision insurance, and 401(k) plans for U.S. employees[65]. - Wendy's prioritizes employee safety and well-being, offering resources such as an employee assistance program and paid sick time to support health[66]. - Wendy's invested in employee training and development programs, including Wendy's University for management skills, enhancing talent across the organization[67]. Competition and Market Risks - Wendy's faces intense competition in the quick-service restaurant sector, necessitating a focus on quality, variety, and customer experience to differentiate itself[35][36]. - The company faces competition from various food outlets, including grocery chains and convenience stores, which could affect customer counts and revenues[78]. - Adverse economic conditions, such as inflation and labor shortages, could lead to declines in consumer spending and negatively impact Wendy's results[80]. - Changes in consumer preferences and discretionary spending could adversely affect Wendy's business and financial condition[81]. Regulatory and Compliance Issues - The company is subject to various federal, state, and local regulations affecting operations, including health, safety, and labor laws, which could impact business[69]. - Wendy's international operations face similar regulations and may be affected by tariffs and foreign investment laws[71]. - The company believes its operations comply with environmental laws, but increased governmental focus on climate change may impact business[73]. - The company is subject to federal, state, and local environmental regulations, which may lead to unforeseen liabilities[102]. Technology and Cybersecurity - The company is heavily dependent on technology for operations, and any failures or interruptions could lead to delays and loss of sales[114]. - Cybersecurity incidents pose risks to the company's operations and reputation, with potential legal and financial repercussions if sensitive data is compromised[117]. - The company maintains cyber risk insurance coverage to mitigate financial impacts from cybersecurity incidents, though there is no assurance it will be sufficient[144]. - The company conducts regular risk assessments as part of its cybersecurity risk management strategy, involving key stakeholders[143]. Financial Obligations and Debt - As of December 29, 2024, the company had approximately $2.7 billion of outstanding debt on its balance sheet, with an additional $300 million available through variable funding notes[121]. - The company's ability to make payments on its debt and fund capital expenditures will largely depend on future operating performance and cash flow generation[122]. - The company is subject to various covenants that limit its ability to incur additional indebtedness, sell assets, or engage in certain transactions, potentially impacting future growth[120]. - Significant contractual commitments and liabilities, including beverage purchases and franchisee leases, could adversely affect the company's liquidity[123]. Shareholder and Governance Matters - The concentration of ownership among certain stockholders, including Nelson Peltz and others, represents approximately 15% of the company's total voting power, influencing corporate decisions[125]. - The company has anti-takeover provisions in its certificate of incorporation, allowing the Board to issue preferred stock without shareholder approval, which could affect capital raising efforts[127]. - The company's subsidiaries' ability to pay dividends is contingent upon achieving sufficient cash flows after meeting their respective cash requirements[124]. Marketing and Brand Management - The effectiveness of marketing and new product development is crucial for maintaining brand value and attracting customers[84]. - Social media risks could harm Wendy's brand and reputation if not managed effectively, impacting customer engagement and revenues[85]. - The company relies on a combination of trademarks, copyrights, and trade secrets to protect its brand, which is critical for business strategy[87]. - Approximately 95% of the restaurants in the Wendy's system are operated by franchisees, which presents risks related to brand image and operational standards[93].

Financial Data and Key Metrics Changes - Global system-wide sales increased by 5.4% in Q4, reaching $3.7 billion, driven by same-restaurant sales growth of 4.1% in the U.S. and 4.9% internationally [38][39] - Adjusted EBITDA increased by 8.6% to $137.5 million, with adjusted earnings per share rising to $0.25, a $0.04 increase over the prior year [41][42] - Full year 2024 total system-wide sales reached $14.5 billion, reflecting over 3% growth compared to the prior year [14] Business Line Data and Key Metrics Changes - U.S. same-restaurant sales growth was 1.4%, while international same-restaurant sales grew by 2.8% [14] - Breakfast sales grew over 6%, outpacing the QSR burger category, driven by increased awareness and impactful innovation [15][28] - Digital sales grew nearly 40% year-over-year, with loyalty member growth up 25% [11][17] Market Data and Key Metrics Changes - The U.S. business maintained or grew dollar and traffic share in the QSR burger category in every quarter [14] - Internationally, system-wide sales grew by 11% on a constant currency basis, led by strong net unit growth [10] - The morning daypart contributed to U.S. growth with sales up over 4% compared to the prior year [10] Company Strategy and Development Direction - The company aims to drive sales and EBITDA growth through three strategic initiatives: Fresh Famous Food, delivering an exceptional customer experience, and accelerating global unit development [25] - Plans to expand in fast-growing categories, including chicken and beverages, while maintaining a focus on value through the Biggie Bag platform [26][27] - The company is committed to increasing operational intensity and enhancing customer experience through technology investments, including digital menu boards and AI voice-enabled ordering [31][32] Management's Comments on Operating Environment and Future Outlook - Management expects Q1 2025 to be the low point for same-restaurant sales, with improvements anticipated as the year progresses [65][66] - The company acknowledges industry traffic headwinds but remains optimistic about regaining momentum through innovative programming and marketing efforts [113][114] - The updated capital allocation policy aims to maximize long-term shareholder value while increasing investments in growth initiatives [45][48] Other Important Information - The company opened 113 new restaurants in Q4 and closed underperforming locations, which is expected to be a headwind to sales growth in 2025 [12][19] - The company plans to increase share repurchases to up to $200 million in 2025, demonstrating confidence in growth plans [48][49] - The company has established a target net leverage ratio of 3.5x to 5x adjusted EBITDA [48] Q&A Session Summary Question: What are the embedded comp expectations for the year? - Management expects positive same-restaurant sales growth for 2025, despite a projected decline in Q1 due to industry traffic headwinds [65][66] Question: Can you elaborate on the unit development outlook? - Management has high confidence in the 2% to 3% net unit growth guidance, with agreements in place for new builds [69][70] Question: What are the big bucket opportunities to drive comps? - Management is focusing on core menu innovation, value propositions, and operational intensity to enhance customer experience [76][78] Question: Why choose share repurchase over reinvestment? - The capital allocation policy allows for both attractive dividends and accelerated growth plans, taking advantage of favorable stock prices [82] Question: What are the early learnings from the voice of the drive-thru pilot? - The pilot has shown improvements in speed of service and sales, with plans to expand to more locations [121][122] Question: How do you expect the breakfast daypart to trend in 2025? - Breakfast is expected to grow faster than the rest of the business, with ongoing investments in awareness and innovation [90][138]

Core Insights - Wendy's reported revenue of $574.27 million for the quarter ended December 2024, marking a year-over-year increase of 6.2% and exceeding the Zacks Consensus Estimate by 1.79% [1] - The earnings per share (EPS) for the same period was $0.25, up from $0.21 a year ago, representing a surprise of 4.17% over the consensus estimate of $0.24 [1] Financial Performance Metrics - Total number of restaurants stood at 7,240, slightly below the nine-analyst average estimate of 7,270 [4] - Same-Restaurant sales in the U.S. increased by 4.1%, surpassing the 3% estimate by analysts [4] - International Same-Restaurant sales rose by 4.9%, compared to the 2.1% average estimate [4] - Global Same-Restaurant sales were up 4.3%, exceeding the 3.4% estimate [4] - U.S. restaurant count was 5,933, compared to the average estimate of 5,963 [4] Revenue Breakdown - Advertising funds revenue was $114.93 million, slightly below the average estimate of $115.50 million, but showed a year-over-year increase of 5.5% [4] - Franchise rental income reached $58.56 million, slightly above the estimate of $58.47 million, with a year-over-year change of 3.2% [4] - Franchise royalty revenue and fees totaled $167.96 million, exceeding the average estimate of $157.88 million, reflecting a significant year-over-year increase of 31.4% [4] - Franchise fees revenue was $34.18 million, significantly higher than the estimated $25.03 million, marking a 67% year-over-year increase [4] - Franchise royalty revenue was reported at $133.79 million, slightly above the estimate of $133.49 million [4] Systemwide Sales - International systemwide sales amounted to $495 million, slightly above the average estimate of $493.44 million [4] - Total systemwide sales reached $3.67 billion, exceeding the estimate of $3.65 billion [4]