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Jun 28, 2020
Wendy's Q2 2020 Earnings Report
Wendy's reported results for the second quarter, noting the impact of the COVID-19 pandemic on its business.
Key Takeaways
Wendy's reported a decrease in revenues and adjusted revenues, primarily driven by lower sales at Company-operated restaurants and a decrease in franchisee royalty revenue due to the COVID-19 pandemic, which was partially offset by the positive impact of the Company’s new breakfast daypart in the U.S. U.S. same-restaurant sales accelerating to high-single digit growth in July, driven by the continued strength of our breakfast and digital businesses.
U.S. same-restaurant sales accelerated to high-single digit growth in July.
Breakfast in the U.S. performed very strongly in the second quarter at approximately 8% of U.S. systemwide sales.
U.S. digital sales in the second quarter were approximately 5% of U.S. systemwide sales, up from approximately 2.5% in fiscal 2019.
The Company repaid the $120 million outstanding balance on its revolving financing facility in July 2020.
Revenue by Segment
Forward Guidance
Due to the current 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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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