Wendy's Q2 2021 Earnings Report
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
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.