Wendy's Q2 2023 Earnings Report
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.
Wendy's
Wendy's
Wendy's 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
- Uncertainty and variability of expenses and benefits
- Impact from advertising funds
Revenue & Expenses
Visualization of income flow from segment revenue to net income