Wendy's Q1 2020 Earnings Report
Key Takeaways
Wendy's Q1 2020 results were impacted by the COVID-19 pandemic, with total revenues decreasing slightly to $405 million and net income dropping to $14.4 million. The company saw growth in its U.S. digital business and the U.S. breakfast launch exceeded initial expectations. Wendy's withdrew its outlook for the 2020 fiscal year due to the uncertain market conditions.
U.S. breakfast launch in early March exceeded initial expectations and continues to perform well.
U.S. digital business grew to approximately 5.5% of sales.
Company took steps to ensure financial flexibility including fully drawing revolving financing facility and suspending share repurchase activity.
The company has lowered its dividend for the second quarter to 5 cents per share.
Wendy's
Wendy's
Wendy's Revenue by Segment
Forward Guidance
Due to the unprecedented global market and economic conditions, the Company withdrew its outlook for the 2020 fiscal year that was issued on February 26, 2020 and its 2021-2024 long-term outlook that was provided at its Investor day in October 2019. The Company intends to provide an updated financial outlook when it can reasonably estimate the impact of the COVID-19 pandemic and changing market conditions.
Revenue & Expenses
Visualization of income flow from segment revenue to net income