Wendy's Q1 2021 Earnings Report
Key Takeaways
Wendy's reported strong Q1 2021 results, exceeding expectations with robust sales growth and increased profits. The company is increasing its 2021 financial outlook across key metrics, driven by the momentum in its business and the successful execution of its long-term growth strategies.
Global systemwide sales grew by 12.5% compared to the previous year.
Global same-restaurant sales increased by 13.0% year-over-year.
Adjusted earnings per share reached $0.20, a 122.2% increase from the previous year.
The Company increased its quarterly dividend by 11% to 10 cents per share.
Wendy's
Wendy's
Wendy's Revenue by Segment
Forward Guidance
The company expects global systemwide sales growth of 8 to 10 percent, adjusted EBITDA of $455 to $465 million, adjusted earnings per share of $0.72 to $0.74, cash flows from operations of $330 to $350 million, capital expenditures of $80 to $90 million, and free cash flow of $250 to $260 million during 2021.
Positive Outlook
- Global systemwide sales growth: 8 to 10 percent (excluding the impact of the 53rd week)
- Adjusted EBITDA: $455 to $465 million
- Adjusted earnings per share: $0.72 to $0.74
- Cash flows from operations: $330 to $350 million
- Free cash flow: $250 to $260 million
Challenges Ahead
- Capital Expenditures: $80 to $90 million
- disruption to the Company’s business from the novel coronavirus (COVID-19) pandemic and the impact of the pandemic on the Company’s results of operations, financial condition and prospects
- the impact of competition or poor customer experiences at Wendy’s restaurants
- economic disruptions, including in regions with a high concentration of Wendy’s restaurants
- changes in discretionary consumer spending and consumer tastes and preferences