Wendy’s(WEN) - 2025 Q4 - Annual Results

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]