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Jul 02, 2023
Wendy's Q2 2023 Earnings Report
Wendy's reported second quarter results, demonstrating sales and profit growth with progress on strategic growth pillars.
Key Takeaways
Wendy's reported strong Q2 2023 results, with meaningful sales and profit growth. The company saw significant profit expansion driven by same-restaurant sales momentum and growth in breakfast and late-night dayparts. Wendy's is confident in delivering its short and long-term outlook.
Systemwide sales growth was 6.1% in the U.S. and 12.7% internationally.
U.S. same-restaurant sales growth was 4.9%, and international growth was 7.2%.
The company continued to drive significant profit expansion.
Breakfast and late-night dayparts delivered outsized growth, and digital strength was sustained.
Revenue by Segment
Forward Guidance
The company provided the following outlook for 2023: Global systemwide sales growth of 6 to 8 percent, Adjusted EBITDA of $530 to $540 million, Adjusted earnings per share of $0.95 to $1.00, Cash flows from operations of $340 to $360 million, Capital expenditures of $75 to $85 million, Free cash flow of $265 to $275 million. The company maintains Long-Term Outlook for 2024-2025: Systemwide sales growth: Mid-Single Digits, Free cash flow growth: High-Single to Low-Double Digits
Positive Outlook
- Global systemwide sales growth: 6 to 8 percent
- Adjusted EBITDA: $530 to $540 million
- Adjusted earnings per share: $0.95 to $1.00
- Cash flows from operations: $340 to $360 million
- Free cash flow: $265 to $275 million
Challenges Ahead
- Capital expenditures: $75 to $85 million
- Systemwide sales growth: Mid-Single Digits
- Free cash flow growth: High-Single to Low-Double Digits
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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