Wendy's Q3 2023 Earnings Report
Key Takeaways
Wendy's reported an increase in total revenues, driven by higher sales at Company-operated restaurants, an increase in franchise royalty revenue, and an increase in advertising funds revenue. Global same-restaurant sales accelerated, digital sales grew, and the company opened 152 new restaurants globally.
Global same-restaurant sales accelerated on a 2-year basis.
Digital sales grew 30% versus the prior year.
Company-operated restaurant margin expanded.
Opened 152 new restaurants across the globe this year.
Wendy's
Wendy's
Wendy's Revenue by Segment
Forward Guidance
The Company Now Expects for 2023: Global systemwide sales growth of 6 to 7 percent, Cash flows from operations of $345 to $360 million and Capital expenditures of $80 to $85 million. In Addition, the Company Continues to Expect: Adjusted EBITDA of $530 to $540 million, Adjusted earnings per share of $0.95 to $1.00 and Free cash flow of $265 to $275 million
Positive Outlook
- Global systemwide sales growth: 6 to 7 percent
- Cash flows from operations: $345 to $360 million
- Adjusted EBITDA: $530 to $540 million
- Adjusted earnings per share: $0.95 to $1.00
- Free cash flow: $265 to $275 million
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
- Unable to provide a reconciliation of those projected measures
Revenue & Expenses
Visualization of income flow from segment revenue to net income