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Sep 27, 2020

Wendy's Q3 2020 Earnings Report

Wendy's reported its highest global same-restaurant sales growth performance in over 15 years, driven by strong sales and a strengthening restaurant economic model.

Key Takeaways

Wendy's Q3 2020 earnings showcased strong global same-restaurant sales growth, the highest in over 15 years. The company's restaurant economic model continued to strengthen, with Company-operated restaurant margin expansion despite commodity headwinds. Wendy's remains focused on its long-term growth pillars: breakfast daypart, digital business, and international footprint.

Global same-restaurant sales growth was the highest in over 15 years.

Company-operated restaurant margins expanded compared to the prior year, despite commodity headwinds.

The company is focused on building its breakfast daypart, growing its digital business, and expanding its international footprint.

A 40% increase in the regular quarterly cash dividend to 7 cents per share was announced.

Total Revenue
$452M
Previous year: $438M
+3.3%
EPS
$0.19
Previous year: $0.19
+0.0%
US Same-Restaurant Sales Growth
7%
Previous year: 4.5%
+55.6%
International Same-Restaurant Sales Growth
-2.1%
Previous year: 3.3%
-163.6%
Global Same-Restaurant Sales Growth
6.1%
Previous year: 4.4%
+38.6%
Gross Profit
$162M
Previous year: $155M
+4.4%
Cash and Equivalents
$313M
Previous year: $439M
-28.7%
Total Assets
$4.96B
Previous year: $5.14B
-3.4%

Wendy's

Wendy's

Wendy's Revenue by Segment

Forward Guidance

Due to the current unprecedented global market and economic conditions, the Company withdrew its outlook for the 2020 fiscal year and its 2021-2024 long-term outlook. The Company intends to provide an updated financial outlook when it can reasonably estimate the impact of the COVID-19 pandemic or when more stable market conditions resume.

Revenue & Expenses

Visualization of income flow from segment revenue to net income