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Jun 30, 2024
Wendy's Q2 2024 Earnings Report
Wendy's financial performance remained steady, with global same-restaurant sales growth slightly increasing and revenue seeing a modest rise.
Key Takeaways
The Wendy's Company reported its Q2 2024 results, showing a slight increase in total revenues and a decrease in net income compared to the same quarter last year. Global same-restaurant sales growth was 0.8%. The company repurchased 1.6 million shares for $27.3 million during the quarter and declared a quarterly dividend of 25 cents per share.
Total revenues increased primarily due to higher advertising funds and franchise royalty revenue.
U.S. Company-operated restaurant margin decreased due to higher labor costs and customer count declines.
Operating profit declined due to increased breakfast advertising investments and higher depreciation.
The company repurchased 1.6 million shares for $27.3 million in the second quarter of 2024.
Wendy's
Wendy's
Wendy's Revenue by Segment
Wendy's Revenue by Geographic Location
Revenue by Segment
Company Sales Revenue
CapyFin.comFranchise Royalty Revenue
CapyFin.comFranchise Fees Revenue
CapyFin.comFranchise Rental Revenue
CapyFin.comAdvertising Funds Revenue
CapyFin.comRevenue by Geographic Location
U.S. Sales Revenue
CapyFin.comInternational Sales Revenue
CapyFin.com Forward Guidance
The Company Now Expects during 2024: Global systemwide sales growth: 3 to 5 percent, Cash flows from operations: $365 to $385 million, Free cash flow: $275 to $285 million. In Addition, the Company Continues to Expect: Adjusted EBITDA: $535 to $545 million, Adjusted earnings per share: $0.98 to $1.02, Capital expenditures: $90 to $100 million
Positive Outlook
- Global systemwide sales growth: 3 to 5 percent
- Cash flows from operations: $365 to $385 million
- Free cash flow: $275 to $285 million
- Adjusted EBITDA: $535 to $545 million
- Adjusted earnings per share: $0.98 to $1.02
Challenges Ahead
- Uncertainty and variability of expenses and benefits
- Unable to provide projections of net income
- Unable to provide projections of earnings per share
- Unable to provide projections of net cash provided by operating activities
- Impact of advertising funds
Revenue & Expenses
Visualization of income flow from segment revenue to net income