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Jul 04, 2021
Wendy's Q2 2021 Earnings Report
Wendy's performance was driven by robust sales growth and exceeded expectations, leading to restaurant-level margins above 20% and record profits.
Key Takeaways
Wendy's reported strong second-quarter results, driven by sales significantly exceeding expectations. The company increased its 2021 financial outlook across all key metrics and raised its 2025 global restaurant target to 8,500-9,000.
Systemwide sales growth was 22.9% globally.
Global same-restaurant sales growth was 17.4%.
The company is targeting 8,500 to 9,000 global restaurants by 2025.
The company increased its quarterly dividend by 20% to 12 cents per share.
Wendy's
Wendy's
Wendy's Revenue by Segment
Revenue by Segment
Company Sales Revenue
CapyFin.comFranchise Royalty Revenue
CapyFin.comFranchise Fees Revenue
CapyFin.comFranchise Rental Revenue
CapyFin.comAdvertising Funds Revenue
CapyFin.com Forward Guidance
Wendy's provided its outlook for 2021, expecting global systemwide sales growth of 11-13%, adjusted EBITDA of $465-$475 million, adjusted EPS of $0.79-$0.81, cash flows from operations of $350-$370 million, capital expenditures of $80-$90 million, and free cash flow of $270-$280 million.
Positive Outlook
- Global systemwide sales growth: 11 to 13 percent (excluding the impact of the 53rd week)
- Adjusted EBITDA: $465 to $475 million (including $25 million of incremental Company breakfast advertising spending)
- Adjusted earnings per share: $0.79 to $0.81
- Cash flows from operations: $350 to $370 million
- Free cash flow: $270 to $280 million
Challenges Ahead
- Capital expenditures: $80 to $90 million
- Uncertainty and variability of expenses and benefits make it difficult to project net income and earnings per share.
- The company excludes certain expenses and benefits from adjusted EBITDA, adjusted earnings per share and free cash flow.
- The company is unable without unreasonable effort to provide projections of net income, earnings per share or net cash provided by operating activities, or a reconciliation of those projected measures.
- Forward-looking statements are susceptible to a number of risks, uncertainties and other factors.