Core Insights - Wendy's reported revenue of $534.75 million for Q1 2024, a year-over-year increase of 1.1%, with EPS of $0.23 compared to $0.21 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate by 1.23%, while the EPS exceeded the consensus estimate by 9.52% [1] Performance Metrics - Total number of restaurants: 7,248, below the average estimate of 7,262 [2] - Same-Restaurant Sales in the U.S.: 0.6%, lower than the estimated 1.4% [2] - Same-Restaurant Sales Internationally: 3.2%, exceeding the estimated 2.9% [2] - Company-operated restaurants: 411, compared to the average estimate of 417 [2] - Sales at Company-operated restaurants: $225.32 million, below the average estimate of $232.29 million, representing a year-over-year decline of 1.2% [2] - Advertising funds revenue: $104.94 million, slightly above the average estimate of $104.79 million, with a year-over-year increase of 3.5% [2] - Franchise royalty revenue: $125.68 million, below the average estimate of $145.77 million, with a year-over-year increase of 2.9% [2] - Franchise rental income: $57.99 million, slightly below the average estimate of $58.30 million, with a year-over-year increase of 0.3% [2] - Franchise fees: $20.82 million, above the average estimate of $19.02 million [2] - Global Real Estate & Development revenue: $59.09 million, slightly above the average estimate of $58.80 million [2] - Systemwide sales total: $3.45 billion, below the average estimate of $3.48 billion [2] - Wendy's U.S. revenue: $442.85 million, below the average estimate of $450.71 million [2] Stock Performance - Wendy's shares have returned +7% over the past month, outperforming the Zacks S&P 500 composite, which declined by -4.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

Wendy's (WEN) came out with quarterly earnings of $0.23 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.52%. A quarter ago, it was expected that this hamburger chain would post earnings of $0.23 per share when it actually produced earnings of $0.21, delivering a surprise of -8.70%.Over the last four quarters, the company ha ...

Revenue and Sales Performance - Revenue increased 1.1% to $534.8 million in Q1 2024 compared to $528.8 million in Q1 2023[109] - Global same-restaurant sales increased 0.9% in Q1 2024, with U.S. same-restaurant sales up 0.6% and international same-restaurant sales up 3.2% compared to Q1 2023[109] - Global same-restaurant sales increased 8.9% on a two-year basis[109] - Franchise royalty revenue increased by $3.5 million to $146.6 million, driven by $2.0 million from new restaurant development and a 1.1% increase in global franchise same-restaurant sales[121] - U.S. same-restaurant sales for company-operated locations decreased by 0.8%, while franchised locations saw a 0.7% increase[118] - Global systemwide sales increased by 2.6% in Q1 2024, compared to a 10.0% increase in Q1 2023[119] Profitability and Margins - Net income increased 5.5% to $42.0 million in Q1 2024 compared to $39.8 million in Q1 2023[109] - Global Company-operated restaurant margin was 14.7% in Q1 2024, an increase of 90 basis points compared to Q1 2023[109] - The company-operated restaurant margin in the U.S. improved to 15.3% in Q1 2024 from 14.7% in Q1 2023[116] - Cost of sales as a percentage of sales decreased to 85.3% in Q1 2024 from 86.2% in Q1 2023, primarily due to higher average check[125] Expenses and Costs - General and administrative expenses increased to $63.8 million in Q1 2024 from $62.3 million in Q1 2023, primarily due to higher share-based compensation and employee benefits[129] - Depreciation and amortization rose to $35.5 million in Q1 2024 from $33.5 million in Q1 2023, driven by asset additions for new and remodeled restaurants[130] - Amortization of cloud computing arrangements increased to $3.5 million in Q1 2024 from $1.6 million in Q1 2023, linked to the HCM system implementation[131] - Impairment of long-lived assets surged to $2.0 million in Q1 2024 from $0.4 million in Q1 2023, due to deteriorating performance of certain restaurants[135] Restaurant Development and Operations - During Q1 2024, the Company and its franchisees added eight net new restaurants across the Wendy's system[111] - The total number of restaurants increased to 7,248 by the end of Q1 2024, with a net addition of 21 restaurants during the quarter[120] - Company-operated restaurants comprised approximately 5% of the total Wendy's system as of March 31, 2024[99] Cash Flow and Financing - Cash provided by operating activities was $100.0 million in Q1 2024, up from $53.0 million in Q1 2023, mainly due to timing of payments for marketing expenses and vendor incentives[155] - The company expects capital expenditures of approximately $90.0 million to $100.0 million for the year, with Q1 2024 expenditures between $73.0 million and $83.0 million[154] - Net cash provided by financing activities improved to $(72.6) million in Q1 2024 from $(132.3) million in Q1 2023, reflecting better cash management[154] - Cash used in investing activities increased to $20.8 million in Q1 2024 from $12.1 million in Q1 2023, primarily due to a $5.1 million rise in capital expenditures and a $4.5 million increase in franchise development fund expenditures[156] - Cash used in financing activities decreased to $72.6 million in Q1 2024 from $132.3 million in Q1 2023, mainly due to a $31.8 million reduction in long-term debt repayments and a $29.4 million decrease in common stock repurchases[157] Dividends and Stock Repurchase - The company paid a quarterly cash dividend of $0.25 per share on March 15, 2024, totaling $51.4 million, with an estimated total cash requirement for dividends of approximately $153.9 million for the remainder of 2024[160] - As of March 31, 2024, the company had $302.8 million remaining under the $500 million stock repurchase program authorized in January 2023, having repurchased 0.4 million shares for $7.2 million in Q1 2024[161] Future Outlook and Challenges - The Company plans to fund approximately $27.0 million of incremental breakfast advertising in 2024 to drive same-restaurant sales[109] - The company expects to incur total costs of approximately $17 million to $19 million related to the Organizational Redesign Plan, with $5.6 million recognized in Q1 2024[112] - Inflationary pressures on labor impacted consolidated results in Q1 2024, with expectations for continued effects throughout 2024, managed through selective menu price increases[164] - The company anticipates that inherent volatility in commodity markets could significantly affect its results of operations in the future[164] - Wendy's restaurant operations are moderately seasonal, with higher average sales typically occurring in summer compared to winter months[165] Tax and Debt Management - The effective tax rate decreased to 26.9% in Q1 2024 from 28.0% in Q1 2023, primarily due to lower tax effects from foreign operations[141] - There were no material changes to the company's debt obligations since December 31, 2023, and it remained in compliance with its debt covenants as of March 31, 2024[159] - The company did not repurchase any long-term debt during Q1 2024, with future repurchases dependent on market conditions and liquidity requirements[158]

Exhibit 99.1 THE WENDY'S COMPANY REPORTS FIRST QUARTER 2024 RESULTS Dublin, Ohio (May 2, 2024) - The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the first quarter ended March 31, 2024. "The momentum we built across our business in the first quarter puts us on track to achieve our 2024 outlook and on the path toward unlocking the full potential of the powerful Wendy's® brand," President and Chief Executive Officer Kirk Tanner said. "We delivered global same-restaurant sales growth, whi ...

Wendy's will donate $5 to the Dave Thomas Foundation for Adoption up to $500,000 when customers scan cold beverage cupsOn National Foster Care Day, Wendy's is waiving delivery and service fees on in-app delivery orders to make it as easy as possible to get cups in hand and scanned DUBLIN, Ohio, May 1, 2024 /PRNewswire/ -- WHAT: To honor National Foster Care Month, Wendy's®, The Coca-Cola Company and Keurig Dr Pepper® are committed to Making a BiggieTM Difference for the more than one hundred thousand childr ...

In trading on Monday, shares of Wendy's were yielding above the 5% mark based on its quarterly dividend (annualized to $1), with the stock changing hands as low as $19.93 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the iShares Russell 3000 ETF (IWV) back on 5/31/2000 — you would have paid $78.27 per share. Fa ...

Fans can make FRYdays Hot & Crispy with free Wendy's Fries offer in the Wendy's app  DUBLIN, Ohio, April 17, 2024 /PRNewswire/ --WHAT: Wendy's® is declaring Friday, April 19, as the best FRYday yet. To celebrate, Wendy's is dropping FREE any size Hot & Crispy Fries with ANY purchase every Friday through the end of the year in the Wendy's app.* Wendy's knows all too well that some of those other guys' cold, soggy fries just won't cut it, but Wendy's has your back with a new meaning to TGIF! Best FRYday Ye ...

JHVEPhoto/iStock Editorial via Getty Images Overview In an environment of rising costs across the board, people are looking for ways to save money any way that they can. Food continues to be an area where a large portion of Americans continue to feel the impact of the price increases. Wendy's (NASDAQ:WEN) and other fast food places alike used to be the place that people went to eat out for a relatively affordable price. While that still seems to be true, sales volume in the restaurant sector is decreasing. ...

Key PointsWendy's stock could give investors precisely what their portfolios need this coming cycle.The stock offers a double-digit upside and bond-beating dividend yield.Set to grow its EPS above peers, Wendy's stock still sells at a discount to the industry.5 stocks we like better than Wendy'sAfter trading down to 78% of its 52-week high, a price not seen since 2022, Wendy's Co. NASDAQ: WEN has become one of the best passive income strategies for retail investors today. Favored by analysts and backed by b ...

DUBLIN, Ohio , April 4, 2024 /PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) will release its first quarter 2024 results before the market opens on Thursday, May 2. 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 call will be available by telephone at (844) 200-6205 fo ...