Wendy's Q4 2020 Earnings Report
Key Takeaways
Wendy's reported strong Q4 and full-year 2020 results, marked by significant systemwide sales growth, driven by the successful launch of the breakfast daypart and increased digital sales. The company secured its position as the #2 QSR hamburger chain in the U.S. and achieved its two highest quarterly Global same-restaurant sales results in over 15 years.
Wendy's secured its position as the #2 QSR hamburger restaurant chain in the U.S.
The company achieved its two highest quarterly Global same-restaurant sales results in over 15 years.
Wendy's successfully launched its breakfast daypart, contributing to sales growth.
Digital sales more than doubled during the year.
Wendy's
Wendy's
Forward Guidance
Wendy's expects continued growth in 2021, with a focus on global systemwide sales, adjusted EBITDA, adjusted earnings per share, and free cash flow.
Positive Outlook
- Global systemwide sales growth: 6 to 8 percent (excluding the impact of the 53rd week)
- Adjusted EBITDA: $445 to $455 million
- Adjusted earnings per share: $0.67 to $0.69
- Cash flows from operations: $310 to $330 million
- Free cash flow: $230 to $240 million
Challenges Ahead
- Uncertainty and variability of expenses and benefits make it difficult to project net income and earnings per share.
- The company excludes certain expenses and benefits from adjusted EBITDA.
- The company excludes certain expenses and benefits from adjusted earnings per share.
- The company excludes certain expenses and benefits from free cash flow.
- Inability to provide projections of net income, earnings per share or net cash provided by operating activities, or a reconciliation of those projected measures.