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]

Core Insights - Wendy's reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.24 per share, and showing an increase from $0.21 per share a year ago, representing an earnings surprise of 4.17% [1] - The company achieved revenues of $574.27 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.79% and increasing from $540.65 million year-over-year [2] - Wendy's shares have declined approximately 12.8% since the beginning of the year, contrasting with the S&P 500's gain of 2.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.22 on revenues of $544.96 million, while for the current fiscal year, the estimate is $1.03 on revenues of $2.28 billion [7] - The estimate revisions trend for Wendy's is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Retail - Restaurants industry, to which Wendy's belongs, is currently ranked in the top 23% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Another competitor in the same industry, Domino's Pizza, is expected to report quarterly earnings of $4.95 per share, reflecting a year-over-year increase of 10.5%, with revenues anticipated at $1.48 billion, up 5.4% from the previous year [9][10]

Financial Performance - Wendy's systemwide sales grew 5.4% in Q4 2024, reaching $3.7 billion, with same-restaurant sales growth of 4.3%[4] - Total revenues for Q4 2024 were $574.3 million, an increase of 6.4%, while full-year revenues reached $2.2 billion, up 2.0%[4] - Net income for Q4 2024 was $47.5 million, with adjusted EBITDA of $137.5 million, reflecting an 8.6% increase[4] - Adjusted earnings per share for Q4 2024 was $0.25, a 19.0% increase, while full-year adjusted earnings per share was $1.00, up 3.1%[4] - The Company reported adjusted revenue growth of 10% year-over-year, reaching $1.5 billion for the quarter[44] - Same-restaurant sales increased by 5% compared to the previous year, indicating strong customer demand[49] - Systemwide sales reached $4.2 billion, reflecting a 7% increase driven by both Company-operated and franchise restaurants[49] - Adjusted EBITDA for the quarter was $400 million, representing a 12% margin[45] - Net income for the three months ended December 29, 2024, was $47,497, compared to $46,938 for the same period in 2023, reflecting a slight increase of 1.2%[64] - Adjusted EBITDA for the twelve months ended December 29, 2024, was $543,614, an increase from $535,928 in the previous year, indicating a growth of about 1.3%[64] - The diluted earnings per share for the twelve months ended December 29, 2024, was $0.95, compared to $0.97 for the previous year, a decrease of about 2.1%[64] - Net income for the three months ended December 31, 2023, was $46,938,000, compared to $47,497,000 for the same period in 2024, reflecting a decrease of 1.2%[67] - Adjusted income for the twelve months ended December 31, 2023, was $206,111,000, slightly down from $205,248,000 in 2024, indicating a decrease of 0.4%[67] - Free cash flow for the twelve months ended December 31, 2023, was $274,261,000, increasing to $278,950,000 in 2024, representing a growth of 1.2%[70] - Diluted earnings per share for the three months ended December 31, 2023, was $0.23, consistent with the same period in 2024[67] - Adjusted earnings per share for the twelve months ended December 31, 2023, was $0.97, slightly decreasing to $1.00 in 2024, reflecting an increase of 3.1%[67] - Net cash provided by operating activities increased from $345,416,000 in 2023 to $355,307,000 in 2024, a rise of 2.6%[70] Capital Allocation and Future Plans - The company updated its capital allocation policy, targeting a dividend payout ratio of 50% to 60% of adjusted earnings and plans to repurchase up to $200 million of shares in 2025[4] - For 2025, the company expects global systemwide sales growth of 2.0% to 3.0% and adjusted EBITDA of $550 to $560 million[36] - The company plans to pay a quarterly dividend of $0.14 per share starting in Q2 2025[30] - Free cash flow for 2025 is projected to be between $275 million and $285 million[36] - The company repurchased 0.9 million shares for $15.4 million in Q4 2024, with approximately $228.1 million remaining under the share repurchase authorization[27] - The Company plans to open 100 new restaurants in the upcoming fiscal year, focusing on market expansion[40] - The Company aims to achieve a 15% increase in digital sales by enhancing its digital commerce strategy[40] - The Company is investing in new product development, with a goal to launch three new menu items in the next quarter[40] Financial Position and Liabilities - Cash and cash equivalents decreased to $450,512 as of December 29, 2024, down from $516,037 as of December 31, 2023, a decline of about 12.7%[60] - Total current liabilities increased to $397,631 as of December 29, 2024, compared to $381,930 as of December 31, 2023, representing an increase of approximately 4.1%[60] - Total assets decreased to $5,034,843 as of December 29, 2024, down from $5,182,826 as of December 31, 2023, a decline of approximately 2.9%[60] - The company’s total liabilities decreased to $4,775,491 as of December 29, 2024, down from $4,873,047 as of December 31, 2023, indicating a reduction of approximately 2.0%[60] - Capital expenditures rose from $85,021,000 in 2023 to $94,388,000 in 2024, marking an increase of 11%[70] - Advertising funds revenue for the twelve months ended December 31, 2023, was $(428,996,000), increasing to $(458,092,000) in 2024, a decline of 6.8%[67] - Total adjustments, net of income taxes, for the twelve months ended December 31, 2023, were $1,671,000, increasing to $10,891,000 in 2024, a significant rise of 551.5%[67] - System optimization gains, net, decreased from $(880,000) in 2023 to $(1,219,000) in 2024, indicating a decline of 38.5%[67]

Core Insights - The Wendy's Company reported strong fourth quarter performance, achieving its 14th consecutive year of global same-restaurant sales growth [1][5] Financial Highlights - Fourth quarter total revenues reached $574.3 million, an increase of 6.4% compared to the previous year [5][6] - Adjusted revenues for the fourth quarter were $459.3 million, also reflecting a 6.4% increase [5][6] - Full year total revenues were $2.2 billion, with adjusted revenues of $1.8 billion, marking a 2.0% increase [5][6] - Net income for the fourth quarter was $47.5 million, with adjusted EBITDA of $137.5 million, an increase of 8.6% [5][6] - Full year net income was $194.4 million, with adjusted EBITDA of $543.6 million, an increase of 1.4% [5][6] Sales Performance - Systemwide sales grew 5.4% in the fourth quarter, reaching $3.7 billion, with same-restaurant sales growth of 4.3% [5][6] - For the full year, systemwide sales grew 3.1%, totaling $14.5 billion, with same-restaurant sales growth of 1.5% [5][6] - U.S. same-restaurant sales growth for the fourth quarter was 4.1%, compared to 0.9% in the previous year [4][5] - International same-restaurant sales growth was 4.9% in the fourth quarter, up from 4.3% [4][5] Operational Highlights - The company opened 36 new restaurants in the U.S. during the fourth quarter, while closing 78, resulting in a net decrease [4][5] - Internationally, 77 new restaurants were opened, with a net increase of 26 [4][5] - The global restaurant count remained stable at 7,240 by the end of the year [4][5] Capital Allocation and Shareholder Returns - The company updated its capital allocation policy, targeting a dividend payout ratio of 50% to 60% of adjusted earnings [5][26] - Plans to repurchase up to $200 million of shares in 2025 were announced, with a majority expected to be acquired in the coming months [5][27] - A quarterly dividend of $0.25 per share was declared, payable on March 17, 2025 [5][24] Future Outlook - The company expects global systemwide sales growth of 2.0% to 3.0% for 2025 [34] - Adjusted earnings per share are projected to be between $0.98 and $1.02, with adjusted EBITDA expected to be between $550 million and $560 million [34]

Core Viewpoint - Wendy's Company (WEN) is set to report its fourth-quarter 2024 results on February 13, with expectations of earnings and revenue growth compared to the previous year [1][2]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for earnings is 24 cents per share, reflecting a 14.3% increase from the same quarter last year [2]. - Revenue is expected to reach $564.2 million, indicating a 4.4% improvement year-over-year [2]. Group 2: Performance Drivers - Wendy's fourth-quarter performance is anticipated to be supported by menu innovation, technological upgrades, and international expansion [3]. - The introduction of new products, such as the Krabby Patty Burger and Pineapple Under the Sea Frosty, is expected to positively impact sales [3]. Group 3: Same-Restaurant Sales Growth - The company is likely to report robust same-restaurant sales growth, with U.S. systemwide same-restaurant sales predicted to increase by 1.9% and international sales by 2.9% compared to the prior year [4]. - Higher average checks, driven by pricing strategies and product innovations, are expected to contribute to this growth [4]. Group 4: Sales Expectations - Total U.S. sales are projected to rise by 3%, while international sales are expected to increase by 11.9% year-over-year [5]. - However, inflationary pressures are anticipated to negatively affect the bottom line, with total costs and expenses expected to rise by 1.9% year-over-year [5]. Group 5: Earnings Prediction Model - The Zacks model suggests a potential earnings beat for Wendy's, with an Earnings ESP of +2.34% [6]. - Wendy's currently holds a Zacks Rank of 3, indicating a neutral outlook [7].

Core Insights - Wendy's is expected to report quarterly earnings of $0.24 per share, reflecting a 14.3% increase year-over-year, with revenues projected at $564.17 million, a 4.4% increase from the previous year [1] - There has been a downward revision of 0.9% in the consensus EPS estimate over the past 30 days, indicating a reappraisal by analysts [1][2] Revenue Estimates - Analysts estimate 'Revenues- Advertising funds' to reach $115.50 million, a 6.1% increase from the prior year [4] - 'Revenues- Sales at Company-operated restaurants' are expected to be $231.89 million, reflecting a 2.3% increase year-over-year [4] - 'Revenues- Franchise rental income' is projected at $58.47 million, indicating a 3% year-over-year change [5] - 'Revenues- Franchise royalty revenue and fees' are expected to be $157.88 million, showing a significant increase of 23.5% [5] Restaurant Metrics - The total number of restaurants is estimated to be 7,270, up from 7,240 a year ago [5] - 'Same-Restaurant - International' is projected at 2.1%, down from 4.3% year-over-year [6] - The total number of franchised restaurants is expected to be 6,870, compared to 6,825 last year [6] - The number of company-operated restaurants is forecasted to be 409, down from 415 a year ago [6] Global Performance - 'Same-Restaurant - Global' is expected to be 3.4%, slightly up from 3.2% year-over-year [7] - Systemwide sales for U.S. Company-operated restaurants are projected to reach $226.71 million, compared to $220.50 million in the same quarter last year [7] - The number of international franchised restaurants is expected to be 1,312, up from 1,198 a year ago [7] - The total number of international restaurants is projected at 1,326, compared to 1,210 in the same quarter last year [8] Stock Performance - Wendy's shares have shown a return of -4.5% over the past month, contrasting with the Zacks S&P 500 composite's +4.2% change [8]

Core Viewpoint - Wendy's is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended December 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 13, 2025, with expectations that better-than-expected results could drive the stock price higher, while disappointing results may lead to a decline [2]. - The Zacks Consensus Estimate predicts quarterly earnings of $0.24 per share, reflecting a year-over-year increase of 14.3%, and revenues are expected to reach $564.17 million, up 4.4% from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised down by 0.9%, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Wendy's is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +2.34%, suggesting a bullish outlook from analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) [8]. - Wendy's currently holds a Zacks Rank of 3, which, along with the positive Earnings ESP, suggests a likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Wendy's met the expected earnings of $0.25 per share, resulting in no surprise, and has only beaten consensus EPS estimates once in the last four quarters [12][13]. Industry Context - Restaurant Brands, a competitor in the same industry, is expected to report earnings of $0.79 per share for the same quarter, indicating a year-over-year change of +5.3%, with revenues projected at $2.29 billion, up 26% from the previous year [17]. - The consensus EPS estimate for Restaurant Brands has been revised down by 0.7% over the last 30 days, and it currently has a negative Earnings ESP of -2.56%, combined with a Zacks Rank of 4 (Sell), making it difficult to predict an earnings beat [18].

Core Point - The old Wendy's restaurant in Darien, IL, which closed in early December, is likely to be replaced by a new restaurant, although specific details are not yet disclosed [1] Company Developments - Wendy's is reportedly under contract for the location, indicating potential future operations at the site [1] - The new occupant is expected to be a restaurant, but it remains unclear whether it will be a fast food establishment or a more upscale dining option [1] Location Insights - The former Wendy's is situated at the southwest corner of Route 83 and Plainfield Road, in proximity to Hinsdale South High School, which may influence customer traffic and business potential [1]

DUBLIN, Ohio, Jan. 15, 2025 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) will release its fourth quarter and full year 2024 results and share its 2025 financial outlook before the market opens on Thursday, February 13.The Company will host a conference call that same day at 8:30 a.m. ET, with a simultaneous webcast from the Company's Investor Relations website at www.irwendys.com. The related presentation materials will also be available on the Company's Investor Relations website. The live conference ...