Financial Performance - Global systemwide sales decreased 1.1% to $3.39 billion in the first quarter of 2025 compared to $3.45 billion in the first quarter of 2024[121] - Revenues decreased 2.1% to $523.5 million in the first quarter of 2025 compared to $534.8 million in the first quarter of 2024[121] - Global same-restaurant sales decreased 2.1%, with U.S. same-restaurant sales decreasing 2.8% and international same-restaurant sales increasing 2.3% compared to the first quarter of 2024[121] - Income before income taxes decreased 4.4% to $54.9 million in the first quarter of 2025 compared to $57.5 million in the first quarter of 2024[121] - Net income for the first quarter of 2025 was $39.2 million, down from $42.0 million in the first quarter of 2024[124] - Total revenues for the first quarter of 2025 were $523.5 million, a decrease of 2.4% from $534.8 million in 2024[125] Restaurant Operations - During the three months ended March 30, 2025, Wendy's added 68 net new restaurants across the system[122] - Company-operated restaurants comprised approximately 5% of the total Wendy's system as of March 30, 2025[110] - The total number of restaurants increased to 7,308 by the end of Q1 2025, with a net addition of 68 restaurants compared to the previous year[129] Sales and Margins - Global Company-operated restaurant margin was 14.3% in the first quarter of 2025, a decrease of 40 basis points compared to the first quarter of 2024[121] - U.S. same-restaurant sales for company-operated locations decreased by 1.2% in Q1 2025, compared to a decrease of 0.8% in Q1 2024[127] - The company-operated restaurant margin in the U.S. was $31.5 million, representing 14.8% of sales in Q1 2025, down from 15.3% in Q1 2024[131] Digital Sales - Digital sales increased from approximately 16.8% of global systemwide sales during the first quarter of 2024 to approximately 20.3% during the first quarter of 2025[120] Franchise and Royalties - Franchise royalty revenue and fees decreased to $145.1 million in the first quarter of 2025 from $146.6 million in the first quarter of 2024[124] - Franchise royalty revenue decreased by $4.0 million to $121.7 million in Q1 2025, primarily due to a 2.2% decrease in global franchise same-restaurant sales[132] Costs and Expenses - Total cost of sales as a percentage of sales increased to 85.7% in Q1 2025 from 85.3% in Q1 2024, driven by higher commodity costs and increased labor rates[136] - General and administrative expenses rose to $68.2 million in Q1 2025, up from $63.8 million in Q1 2024, primarily due to higher employee compensation[140] Other Financial Metrics - Advertising funds revenue decreased to $100.4 million in Q1 2025 from $104.9 million in Q1 2024, reflecting a net decrease in franchise same-restaurant sales[135] - The company recognized a net system optimization loss of $0.1 million in Q1 2025, consistent with the previous year[143] - Impairment of long-lived assets decreased to $1.4 million in Q1 2025 from $2.0 million in Q1 2024, attributed to lower impairment charges from certain underperforming restaurants[145] - Other operating income increased by $4.0 million to $6.3 million in Q1 2025, primarily due to a claim settlement[146] - Interest expense, net decreased by $1.0 million to $30.5 million in Q1 2025, attributed to lower interest income from amended leases[147] - The company recorded an investment loss of $1.7 million in Q1 2025 due to impairment charges on equity securities[148] Cash Flow and Financing - Cash provided by operating activities was $85.4 million in Q1 2025, down from $100.0 million in Q1 2024, primarily due to timing of marketing expense payments[165] - Cash used in financing activities rose to $179.3 million in Q1 2025, an increase of $106.7 million from Q1 2024, mainly due to higher stock repurchases[167] - The company had $389.0 million in cash, cash equivalents, and restricted cash as of March 30, 2025, with an additional $300.0 million available from a revolving financing facility[158] Tax and Share Repurchase - The effective tax rate increased to 28.6% in Q1 2025 from 26.9% in Q1 2024, influenced by adjustments related to deferred income taxes and state income taxes[150] - The company repurchased 8.2 million shares for $124.1 million under the stock repurchase program during Q1 2025, with $110.9 million remaining under the authorization[160]

Financial Performance - Global systemwide sales were $3.4 billion, a decrease of 1.1% compared to the previous year[4]. - Total revenues for the first quarter of 2025 were $523.5 million, a decrease of 2.1% year-over-year[5]. - Net income for the first quarter was $39.2 million, down 6.7% from the previous year[5]. - The Company reported revenues of $534.8 million for the three months ended March 31, 2024, compared to $523.5 million for the same period in 2025, reflecting a decrease of approximately 2.4%[37]. - Net income for the three months ended March 31, 2024, was $42.0 million, down from $39.2 million in 2025, representing a decline of about 4.3%[37]. - Adjusted EBITDA decreased to $127.8 million in 2024 from $124.5 million in 2025, indicating a decline of approximately 2.6%[43]. - Adjusted earnings per share decreased by 13.0% to $0.20[5]. - Diluted earnings per share fell from $0.20 in Q1 2024 to $0.19 in Q1 2025, a decrease of 5%[46]. Sales and Restaurant Performance - U.S. same-restaurant sales declined by 2.8%, while international same-restaurant sales grew by 2.3%[3]. - The company added 68 net new restaurants, contributing to a total restaurant count of 7,308 globally[4]. - Digital sales mix reached a record 20.3% of total sales[4]. - Same-restaurant sales and systemwide sales growth are calculated on a constant currency basis, excluding the impact of foreign currency translation for better year-over-year comparability[33]. Cash Flow and Liquidity - Free cash flow increased by 21.4% to $68.0 million[5]. - Cash and cash equivalents decreased from $450.5 million in December 2024 to $335.3 million in March 2025, a decline of about 25.6%[39]. - Net cash provided by operating activities decreased from $99,987,000 in Q1 2024 to $85,415,000 in Q1 2025, a decline of about 14.7%[49]. - The Company’s free cash flow is defined as cash flows from operations minus capital expenditures and other specified expenses, highlighting its importance for liquidity and investment opportunities[25]. Shareholder Returns and Capital Management - The company expects full-year adjusted EBITDA to be between $530 million and $545 million[18]. - The company plans to return $173.5 million to shareholders through dividends and share repurchases[4]. - Total liabilities increased slightly from $4.775 billion in December 2024 to $4.789 billion in March 2025, reflecting a growth of approximately 0.3%[39]. Advertising and Marketing - The Company’s advertising funds revenue decreased from $104.9 million in 2024 to $100.4 million in 2025, a decline of approximately 4.3%[37]. - Advertising funds revenue decreased from $104,944,000 in Q1 2024 to $100,360,000 in Q1 2025, a decline of about 4.6%[46]. - The company reported a net change in advertising funds impact from $(21,850,000) in Q1 2024 to $6,093,000 in Q1 2025, showing a significant turnaround[49]. Cost Management - Reorganization and realignment costs were $5,673,000 in Q1 2024, compared to a credit of $(692,000) in Q1 2025, indicating a shift in expenses[46]. - Capital expenditures were $17,354,000 in Q1 2024 and $17,679,000 in Q1 2025, indicating a slight increase[49]. Operating Performance - The Company’s operating profit rose from $81.2 million in 2024 to $83.1 million in 2025, an increase of about 2.4%[37]. - The number of shares used to calculate diluted income per share decreased from 206.9 million in 2024 to 201.6 million in 2025[37].

Core Insights - The Wendy's Company reported a decline in total revenues and net income for the first quarter of 2025, primarily due to lower sales in U.S. Company-operated restaurants and decreased franchise royalty revenue [5][8][12] - The company achieved systemwide sales growth of 8.9% in its International segment, while U.S. systemwide sales declined by 2.6% [2][9] - Wendy's added 68 net new restaurants globally and aims for a full-year net unit growth of 2-3% [2][9] Operational Highlights - Systemwide sales growth for the first quarter of 2025 was -1.1% globally, with U.S. same-restaurant sales down by 2.8% and International same-restaurant sales up by 2.3% [7][9] - Total systemwide sales reached $3.4 billion, a decrease of 1.1% compared to the previous year [9] - The company increased its global digital sales mix to a record 20.3% [9] Financial Performance - Total revenues for the first quarter of 2025 were $523.5 million, down 2.1% from $534.8 million in the same period of 2024 [5][9] - Net income decreased to $39.2 million, a decline of 6.7% from $42.0 million year-over-year [5][12] - Adjusted EBITDA fell to $124.5 million, down 2.6% from $127.8 million in the prior year [5][13] Cost and Expenses - U.S. Company-operated restaurant margin decreased to 14.8%, down 0.5% from the previous year, primarily due to commodity inflation and labor rate inflation [5][10] - General and administrative expenses increased by 6.9% to $68.2 million, attributed to higher employee compensation and benefits [5][11] Shareholder Returns - The company returned $173.5 million to shareholders through dividends and share repurchases [9] - A quarterly cash dividend of $0.14 per share was declared, payable on June 16, 2025 [14] Future Outlook - The company updated its full-year 2025 outlook to reflect the current consumer environment, maintaining a focus on strategic priorities [2][9] - Capital expenditures are projected to be between $100 million and $110 million, with adjusted earnings per share expected to range from $0.92 to $0.98 [9][19]

Core Insights - Wendy's Co (NASDAQ:WEN) is set to announce its first-quarter earnings on May 2, with significant options trading activity indicating heightened interest and potential volatility ahead of the report [1][2] - The current sentiment among options traders is leaning bearish, as evidenced by a high call/put volume ratio of 7.99, which ranks in the 98th percentile of annual readings [2] - Historically, Wendy's stock has shown mixed performance post-earnings, with an average next-day swing of 2.3% over the last two years, but current options pricing suggests a larger expected move of 7.1% [3] Stock Performance - Wendy's stock is currently trading at $12.47, down 1%, and is close to its five-year low of $12.05 reached on April 9 [4] - The stock has experienced a 23.5% year-to-date decline and has been under pressure from a descending 20-day moving average since late March [4] - The stock's rally attempts have been capped at the $16 level in late February, indicating resistance in the current market environment [4] Volatility Expectations - Wendy's stock has historically outperformed options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) rating of 94 out of 100 [7]

Core Insights - Palantir is leveraging digital twins to unify fragmented data sources for major retailers like Wendy's and Walgreens, enhancing real-time visibility and AI-driven decision-making [1][2] - Wendy's significantly reduced its manual workload using Palantir's AI platform, resolving a syrup shortage across 6,450 restaurants in just five minutes, compared to a full day previously [1][13] - Walgreens improved task efficiency by 30% through intelligent workload routing, scaling from a pilot program in 10 stores to 4,000 stores within eight months [2][19] Group 1: Palantir's Technology and Implementation - Palantir's approach involves creating digital twins, which are virtual models of a client's entire operation, allowing for unified data presentation on a dashboard [3] - The company applies learnings from government data integration to commercial enterprises, focusing on personalization and automation to enhance customer experience and operational efficiency [4][5] - The digital twin for Wendy's monitors the supply chain in real-time, connecting 3,500 trucks and 60 core partners, enabling proactive management of supply issues [9][10] Group 2: Wendy's Case Study - Wendy's historically relied on a stockpiling inventory model, holding $370 million in inventory to meet customer demands, which became unsustainable due to rising costs [7] - The digital twin identified a syrup shortage and recommended immediate actions, allowing Wendy's to manage the issue in five minutes instead of a day [10][12] - The system's analysis revealed a network-wide shortage of 10,200 cases of syrup, enabling Wendy's to order the necessary 3,500 cases from available distribution points [12][13] Group 3: Walgreens Case Study - Walgreens operates 8,500 stores and employs 220,000 workers, collecting billions of data points daily, which were previously housed in disconnected systems [14][15] - Palantir built a digital twin for Walgreens in under 45 days, facilitating real-time insights and dynamic decision-making [16] - The implementation of intelligent routing for pharmacy tasks allowed Walgreens to balance workloads effectively, cutting task time by 30% [17][19]

Company Overview - Wendy's is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year decline of 13% [3] - Revenues are anticipated to be $523.98 million, down 2% from the same quarter last year [3] - The consensus EPS estimate has been revised 2.84% lower in the last 30 days, indicating a bearish sentiment among analysts [4] Earnings Expectations - The stock may rise if actual earnings exceed expectations in the upcoming report, scheduled for May 2 [2] - Conversely, if earnings fall short, the stock could decline [2] - The Earnings ESP for Wendy's is -1.14%, suggesting analysts have become more pessimistic about the company's earnings prospects [11] Historical Performance - In the last reported quarter, Wendy's exceeded expectations by delivering earnings of $0.25 per share against an estimate of $0.24, resulting in a surprise of +4.17% [12] - Over the past four quarters, Wendy's has beaten consensus EPS estimates two times [13] Industry Context - In the Zacks Retail - Restaurants industry, BJ's Restaurants is expected to post earnings of $0.40 per share, indicating a year-over-year increase of 25% [17] - BJ's Restaurants' revenue is projected to be $347.94 million, up 3.2% from the previous year [17] - The consensus EPS estimate for BJ's has been revised down by 0.7% in the last 30 days, and it has an Earnings ESP of -5.23% [18]

Core Viewpoint - Wendy's stock has experienced a significant decline of 18.9% over the past month, primarily due to macroeconomic challenges, stiff competition, and high operating costs [1][17]. Financial Performance - For fiscal 2025, Wendy's projects commodity inflation of about 1% and wage inflation of approximately 4%, with total costs and expenses expected to rise 1% year over year to $1.9 billion [2]. - The stock closed at $12.54, which is 39% below its 52-week high of $20.65, and has underperformed compared to industry peers [3]. Sales Growth - Wendy's reported robust global same-restaurant sales growth, with international restaurants (excluding Argentina) seeing a 4.9% year-over-year increase in the fourth quarter of fiscal 2024, compared to 4.3% a year ago [6]. - The company’s breakfast sales grew over 6% year over year in 2024, outperforming the QSR burger category, driven by increased brand awareness and product innovation [8]. Strategic Initiatives - Wendy's plans to sustain breakfast momentum through product innovation, strategic partnerships, and targeted promotions, reallocating advertising funds to enhance customer experience [9]. - The company expanded its system footprint by opening 276 restaurants globally in fiscal 2024 and anticipates opening between 150 and 200 units in 2025, with a focus on international markets [10][11]. Valuation - Wendy's is currently valued at a discount compared to the industry on a forward 12-month P/E basis, with a ratio of 12.16 [12]. - Earnings estimate revisions for 2025 indicate a projected decline of 0.1% in sales and 1% in EPS, contrasting with growth expectations for competitors [16].

Core Concept - Wendy's is introducing new variations of its iconic Frosty dessert, including Frosty Swirls and Frosty Fusions, to enhance customer experience and cater to evolving consumer preferences for customization and new flavors [2][3]. Product Innovations - Frosty Swirls will be available in the Wendy's app starting April 11 and nationwide from April 15, allowing customers to choose their favorite Frosty flavor and select from three indulgent sauces [2][4]. - Frosty Fusions will launch nationwide on May 12, enabling customers to add sauces and mix-ins for a more personalized dessert experience [3][4]. - Specific flavors for Frosty Swirls include Strawberry, Caramel, and Brownie Batter, while Frosty Fusions feature combinations like Pop-Tarts Strawberry, OREO Brownie, and Caramel Crunch [6]. Marketing Strategy - The company emphasizes the Frosty as a cultural icon, having been on the menu for 55 years, and aims to attract consumers looking for new flavors and customization options [2]. - Wendy's is enhancing the in-restaurant experience with updated equipment and specially designed cups and spoons to improve the enjoyment of Frosty products [4]. Company Background - The Wendy's Company operates over 7,000 restaurants globally and is known for its commitment to fresh food and customer satisfaction [5]. - Wendy's supports social initiatives, including the Dave Thomas Foundation for Adoption, which aims to increase adoptions from the foster care system [5].

Core Concept - Wendy's is introducing new variations of its iconic Frosty dessert, including Frosty Swirls and Frosty Fusions, to enhance customer experience and cater to evolving consumer preferences for customization and new flavors [1][2][3]. Product Innovations - Frosty Swirls will be available starting April 11 in the Wendy's app and nationwide on April 15, allowing customers to choose their favorite Frosty flavor and select from three indulgent sauces [2][4]. - Frosty Fusions, launching nationwide on May 12, will allow customers to add sauces and mix-ins, providing a new way to enjoy the Frosty [3][4]. Customer Experience Enhancements - Wendy's has updated in-restaurant equipment to ensure the perfect mix for Frosty Fusion treats and introduced a new cup design with a domed lid for better enjoyment [4]. - A custom blue Frosty spoon has been created to enhance the experience, allowing customers to enjoy every bit of the dessert [4]. Flavor Options - New Frosty Swirl flavors include Strawberry Frosty Swirl, Caramel Frosty Swirl, and Brownie Batter Frosty Swirl, each offering unique taste experiences [6]. - Frosty Fusions feature innovative combinations such as Pop-Tarts Strawberry Frosty Fusion and OREO Brownie Frosty Fusion, marking the first time these popular snacks are offered as mix-ins in the quick-service restaurant industry [6].

Core Points - The Wendy's Company will release its first quarter 2025 results on May 2, 2025, before the market opens [1] - A conference call will be held on the same day at 8:30 a.m. ET, with a webcast available on the Company's Investor Relations website [2] Company Overview - The Wendy's Company operates over 7,000 restaurants globally and employs hundreds of thousands of people [3] - Founded in 1969, Wendy's is known for its fresh, made-to-order square hamburgers and popular menu items like the Spicy Chicken Sandwich and Frosty dessert [3] - The company supports the Dave Thomas Foundation for Adoption, which aims to increase adoptions from North America's foster care system [3]