Wendy’s(WEN)

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The Wendy's Company to Report Fourth Quarter and Full Year 2024 Results on February 13, 2025 and Host an Investor Day on March 6, 2025
Prnewswire· 2025-01-15 21:30
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 ...
Wendy's Offers 12 Days of Sweet & Spicy Holiday BOGO Deals Exclusively In-App
Prnewswire· 2024-12-11 14:00
Core Points - Wendy's is launching a "Bow-Go" season with 12 days of BOGO (Buy One Get One) holiday deals exclusively available through the Wendy's app from December 11 to December 22, 2024, offering over $50 in savings on popular menu items [1][2] - The deals include iconic items such as the Breakfast Baconator and Dave's Single, as well as new offerings like Saucy Nuggs, encouraging customers to engage with the app for daily surprises [1][3] - Wendy's aims to provide value during the holiday season, recognizing the financial stress many face, and is promoting digital deals to enhance customer experience [3] Company Information - Wendy's was founded in 1969 by Dave Thomas in Columbus, Ohio, and is known for its made-to-order square hamburgers and fresh ingredients [4] - The company operates over 7,000 restaurants worldwide and is committed to social responsibility, particularly through the Dave Thomas Foundation for Adoption [4]
Sweet Season's Greetings: Wendy's Kicks Off the Countdown to Frosty Key Tags
Prnewswire· 2024-12-04 14:00
Core Points - Wendy's is reintroducing the $3 Frosty Key Tags starting December 9, 2024, allowing customers to receive a free Jr. Frosty with purchase throughout 2025 [1][2] - Proceeds from the sale of each Frosty Key Tag will benefit the Dave Thomas Foundation for Adoption, which aims to find permanent homes for children in foster care [2][3] Group 1: Product Details - The Frosty Key Tags will be available for purchase from December 9, 2024, to February 16, 2025, at participating U.S. Wendy's locations [2] - Customers can redeem their free Jr. Frosty using either a physical keychain or a digital version in the Wendy's app from December 9, 2024, to December 31, 2025 [2][3] Group 2: Social Impact - The Dave Thomas Foundation for Adoption has successfully helped over 14,800 children find families in the U.S. and Canada [4] - Each purchase of a Frosty Key Tag contributes 90% of the proceeds to the Foundation, supporting its mission to assist children in foster care [7] Group 3: Company Background - Wendy's was founded in 1969 by Dave Thomas and is known for its quality food offerings, including made-to-order square hamburgers and the Frosty dessert [6] - The company operates over 7,000 restaurants worldwide and is committed to making a positive impact through initiatives like the Wendy's Wonderful Kids program [6]
As Temperatures Drop Wendy's Spices Up Holiday Meal Planning with $3.99 Spicy Chicken Sandwich In-App Offer
Prnewswire· 2024-11-18 14:00
Core Points - Wendy's is offering a $3.99 Spicy Chicken Sandwich deal exclusively through its app, available daily until December 29, 2024, aimed at enhancing holiday gatherings with flavorful options [1][2][3] Group 1: Offer Details - The $3.99 Spicy Chicken Sandwich is available exclusively in the Wendy's app, allowing fans to order easily for mobile pickup or in-store [2][3] - The sandwich features a juicy chicken breast marinated and breaded with a unique blend of peppers and spices, topped with lettuce, tomato, and mayo [1][3] Group 2: Company Background - Wendy's was founded in 1969 by Dave Thomas in Columbus, Ohio, and is known for its made-to-order square hamburgers and fresh ingredients [4] - The company employs hundreds of thousands of people across over 7,000 restaurants worldwide, with a vision of becoming the most thriving and beloved restaurant brand [4]
Celebrating 55 Years of Frosty: Wendy's Drops New Salted Caramel Frosty Nationwide
Prnewswire· 2024-11-12 13:01
Group 1 - Wendy's introduces a new seasonal Frosty flavor, Salted Caramel Frosty, starting November 12, 2024, to celebrate 55 years of the Frosty brand [1][2] - The Salted Caramel Frosty features a rich, salty caramel flavor and will be available for a limited time [1][4] - Wendy's is also launching two new fall menu items: the Mushroom Bacon Cheeseburger and a revamped Taco Salad, available alongside the Salted Caramel Frosty [3][4] Group 2 - The Mushroom Bacon Cheeseburger includes roasted mushrooms, crispy bacon, Muenster cheese, and creamy garlic spread on fresh beef [3][4] - The Taco Salad will feature a new creamy, zesty salsa dressing, fire-roasted corn, crispy tortilla strips, and Wendy's famous Chili [3][4] - Wendy's aims to provide comfort and joy through its fall menu items, appealing to customer cravings as temperatures drop [4]
Wendy's to close 140 restaurants by the end of the year
New York Post· 2024-11-02 07:13
Core Viewpoint - Wendy's is closing 140 underperforming locations by the end of 2024 to enhance its restaurant footprint and overall system health while planning to replace many of these with new, more profitable locations [1][2]. Group 1: Closure and Replacement Strategy - The closures are part of a broader initiative to strengthen the brand and operations, with the company focusing on outdated locations that do not meet sales expectations [1][2]. - Wendy's aims to offset the closures with new restaurant openings, expecting net unit growth to remain flat compared to the previous year, but projecting a significant growth rate of 3% to 4% in 2025 [2][3]. Group 2: Performance and Growth - Over the last two years, Wendy's has opened more than 500 new restaurants and is on track for 250 to 300 openings globally for the full year [3][4]. - The company's revenue for the latest quarter was $566.7 million, reflecting a 2.9% increase from the previous year, surpassing analysts' expectations [4].
Wendy's is closing another 140 'outdated' stores as it looks to build out new higher-tech locations
Business Insider· 2024-11-01 17:18
Group 1 - Wendy's will close 140 "outdated" stores this year, ahead of the previously expected 100 closures, which will leave its growth count flat for 2024 [2][3] - The closures are part of a strategy to replace underperforming locations with new restaurants in better areas, aiming for improved sales and profitability [4] - The company has opened over 500 locations in the last two years, indicating a focus on expansion despite the closures [3] Group 2 - Wendy's is nearing completion of a redesign that includes new technology and drive-thru improvements, with nearly 90% of restaurants updated [5] - The redesign is expected to enhance employee efficiency, simplify delivery orders, and improve customer satisfaction, leading to higher sales and profitability [5] - The new design is reported to cost nearly 10% less to build and is more economical for franchisees to operate, featuring efficient lighting and redesigned kitchens [5]
Wendy's Q3 Earnings Match Estimates, Revenues Up Year Over Year
ZACKS· 2024-11-01 15:01
Core Viewpoint - The Wendy's Company reported third-quarter fiscal 2024 results with earnings meeting estimates and revenues exceeding expectations, driven by strong same-restaurant sales, U.S. breakfast sales, and digital sales momentum [1][3][4]. Financial Performance - Adjusted earnings per share (EPS) for Q3 were 25 cents, consistent with the Zacks Consensus Estimate, down from 27 cents in the prior-year quarter [3]. - Revenues reached $566.7 million, surpassing the consensus mark of $558.9 million, reflecting a year-over-year increase of 2.9% [4]. - Same-restaurant sales at international locations (excluding Argentina) rose 0.7% year-over-year, a decline from 7.8% a year ago, while global restaurant comps increased by 0.2% compared to 2.8% in the prior-year quarter [4][5]. Operational Highlights - The company-operated restaurant margin remained flat at 16.5% year-over-year, with higher labor costs offset by increased average checks and labor efficiencies [7]. - General and administrative expenses rose to $62.8 million from $59.3 million a year ago, driven by increased employee compensation and professional fees [8]. - Quarterly operating profit was $94.7 million, down 6.8% from the previous year, influenced by higher advertising costs and depreciation [9]. Balance Sheet and Cash Flow - As of September 29, 2024, cash and cash equivalents totaled $482.2 million, down from $516 million at the end of December 2023 [12]. - Long-term debt was reported at $2.72 billion, slightly down from $2.73 billion at the end of December 2023 [12]. - The company declared a quarterly dividend of 25 cents per share, payable on December 16, 2024 [12]. 2024 Outlook - For 2024, Wendy's expects global system-wide sales growth of around 3%, revised down from the previous estimate of 3-5% [13]. - Adjusted EBITDA is projected to remain in the range of $535-$545 million, with adjusted EPS anticipated between 99 cents and $1.01 [13][14].
Wendy’s(WEN) - 2024 Q3 - Earnings Call Transcript
2024-10-31 16:37
Financial Data and Key Metrics Changes - In Q3 2024, global systemwide sales grew by 1.8%, with same-restaurant sales increasing by 0.2% [7][20] - U.S. company restaurant margin remained flat at 15.6%, impacted by labor rate inflation and customer account declines [20] - Adjusted EBITDA decreased by 2.9% to approximately $135 million, primarily due to increased investment in breakfast and higher general and administrative expenses [21] - Free cash flow increased due to a decrease in cash paid for cloud computing arrangements and capital expenditures [21] Business Line Data and Key Metrics Changes - The U.S. segment maintained traffic share in the QSR Burger category, with strong performance in the morning and late-night dayparts [7][9] - International segment achieved high single-digit systemwide sales growth, driven by nearly 100 new restaurant openings [8] - Digital sales grew almost 40% year-over-year, with a 17% digital sales mix in the U.S. [9] Market Data and Key Metrics Changes - October U.S. same-restaurant sales showed significant acceleration compared to Q3, indicating positive momentum heading into Q4 [22][51] - The company expects full-year global systemwide sales growth of approximately 3%, with same-restaurant sales growth of 1% to 2% [22] Company Strategy and Development Direction - The company is focused on operational excellence and enhancing customer experience across all restaurants [10][11] - New development incentives have been introduced in Canada and Latin America to stimulate growth [12] - The company aims for 3% to 4% net unit growth in 2025, with a focus on international development [29][14] Management's Comments on Operating Environment and Future Outlook - Management noted a challenging consumer environment in Q3 but observed momentum in the second half of the quarter and into Q4 [37] - The company remains optimistic about the future, with plans to continue investing in breakfast and enhancing the customer experience [34][19] Other Important Information - The company announced a fourth-quarter dividend of $0.25 per share, reflecting a full-year dividend of $1 per share in 2024 [24] - The company has repurchased approximately 3.6 million shares year-to-date, with $248 million remaining on its share repurchase authorization [25] Q&A Session Summary Question: Unit growth outlook and international development - Management indicated that the strategy is to strengthen the system by closing underperforming restaurants and focusing on international development, with a target of 70% international and 30% domestic growth [28][29] Question: Breakfast performance and future plans - Breakfast is seen as a long-term strategic initiative, with continued investment expected to drive growth [34] Question: Consumer health and macro pressures - Management acknowledged a challenging consumer environment but noted improved momentum in Q4 [37] Question: Prime costs and operational efficiency - Management is focused on improving labor and food costs through efficiency initiatives and menu optimization [40] Question: Adjusted EBITDA guidance despite sales shortfall - The guidance was maintained due to increased franchise fees and lower general and administrative expenses [42] Question: Beverage component of the offering - Management sees significant opportunities in the beverage category and plans to innovate further [45] Question: Performance of the Biggie Bag platform - The Biggie Bag platform performed well, helping maintain market share despite competitor promotions [55] Question: Acceleration in sales growth components - Management noted balanced growth across the menu, with strong performance from large sandwiches and innovative products [59] Question: Themes around store closures - Closures are spread across various geographies, focusing on strengthening the overall system rather than specific regions [62] Question: Incrementality of breakfast sales - Breakfast sales are highly incremental and contribute positively to overall growth [64] Question: Commodity and labor inflation outlook - Management expects slight inflation in commodities, particularly beef, while labor rates remain stable [67] Question: Operational improvements as a sales driver - Operational excellence is viewed as a key driver for sales growth and customer satisfaction [69] Question: Success of the $1 drink promotion - The promotion has been effective, with plans to leverage the beverage platform further [72] Question: Executive leadership changes and organizational priorities - Management is confident in the current leadership team and their ability to drive growth [74] Question: Engagement strategies for promotions - Successful promotions are attributed to a combination of menu quality, effective advertising, and strong digital engagement [76]
Wendy's (WEN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
ZACKS· 2024-10-31 15:01
Core Insights - Wendy's reported revenue of $566.74 million for the quarter ended September 2024, reflecting a year-over-year increase of 2.9% and a surprise of +1.41% over the Zacks Consensus Estimate of $558.87 million [1] - The company's EPS for the quarter was $0.25, unchanged from the consensus estimate but down from $0.27 in the same quarter last year [1] Financial Performance Metrics - Same-Restaurant Sales in the U.S. increased by 0.2%, below the nine-analyst average estimate of 1.1% [3] - Total number of restaurants was 7,292, slightly below the average estimate of 7,312 [3] - Same-Restaurant Sales Internationally rose by 0.7%, compared to the 2.2% average estimate [3] - Franchised restaurants totaled 6,881, below the estimated 6,898 [3] - Advertising fund revenues were $123.15 million, exceeding the estimate of $112.01 million, marking a +13.1% change year-over-year [3] - Sales at Company-operated restaurants were $230.40 million, below the estimate of $234.54 million, representing a -1.8% change year-over-year [3] - Franchise rental income was $59.31 million, surpassing the estimate of $58.30 million, with a +3% year-over-year change [3] - Franchise royalty revenue and fees totaled $153.87 million, slightly below the estimate of $154.40 million, but showed an +18.3% change year-over-year [3] - Franchise royalty revenue was $132.60 million, compared to the estimate of $134.82 million [3] - Franchise fees reached $21.27 million, exceeding the estimate of $19.72 million, with a +10.4% year-over-year change [3] - Global Real Estate & Development revenues were $60.42 million, above the estimate of $58.74 million, reflecting a +3.9% change year-over-year [3] - U.S. revenues were $468.73 million, surpassing the estimate of $462.30 million, with a +2.5% year-over-year change [3] Stock Performance - Wendy's shares have returned +16.9% over the past month, outperforming the Zacks S&P 500 composite's +1% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [4]