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Dec 29, 2019

Wendy's Q4 2019 Earnings Report

Wendy's reported strong sales growth and laid the foundation for future success in 2019.

Key Takeaways

Wendy's reported a strong year of sales growth, driven by accelerating sales growth in the second half of the year. The company is focused on efficient, accelerated growth behind its three major growth pillars: entering the breakfast daypart, growing its digital business, and expanding its International footprint.

Delivered a very strong year of sales growth.

Accelerating sales growth in the second half of the year.

Focus remains on efficient, accelerated growth behind three major growth pillars.

Well positioned to drive growth in 2020.

Total Revenue
$427M
Previous year: $398M
+7.4%
EPS
$0.08
Previous year: $0.16
-50.0%
US Same-Restaurant Sales Growth
4.5%
Previous year: -0.1%
-4600.0%
International Same-Restaurant Sales Growth
2.7%
Previous year: 2.3%
+17.4%
Global Same-Restaurant Sales Growth
4.3%
Previous year: 0.1%
+4200.0%
Gross Profit
$140M
Previous year: $154M
-9.4%
Cash and Equivalents
$300M
Previous year: $431M
-30.4%
Total Assets
$4.99B
Previous year: $4.29B
+16.4%

Wendy's

Wendy's

Wendy's Revenue by Segment

Forward Guidance

During 2020, the Company Expects:

Positive Outlook

  • Global systemwide sales of approximately $12.0 to $12.5 billion.
  • Adjusted EBITDA of approximately $425 to $435 million.
  • Adjusted earnings per share of approximately $0.60 to $0.62.
  • Cash flows from operations of approximately $285 to $295 million, including the impact of the settlement of the Financial Institutions case. Excluding the impact of the settlement, the Company expects cash flows from operations of approximately $305 to $315 million.
  • Free cash flow of approximately $230 to $240 million, excluding the approximately $20 million tax-effected impact from the settlement of the Financial Institutions case, which was finalized in January 2020. Including the impact of the settlement, the Company expects free cash flow of approximately $210 to $220 million.

Revenue & Expenses

Visualization of income flow from segment revenue to net income