Wendy's Q3 Earnings Match Estimates, Revenues Up Year Over Year

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].