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Dec 31, 2023
Wendy's Q4 2023 Earnings Report
Wendy's reported mixed results for Q4 2023, with revenue increasing slightly but U.S. Company-operated restaurant margin declining.
Key Takeaways
Wendy's reported a slight increase in total revenues for the fourth quarter of 2023, driven by higher franchise royalty and advertising funds revenue, offset by a decrease in U.S. Company-operated restaurant margin due to higher commodity and labor costs and customer count declines. The company is investing in accelerated global growth and restaurant margin expansion.
Systemwide sales growth was 3.2% globally, driven by U.S. and International performance.
Global same-restaurant sales growth increased by 1.3%.
Net income increased by 13.6% to $46.9 million.
The Company repurchased 2.4 million shares for $45.7 million.
Wendy's
Wendy's
Wendy's Revenue by Segment
Revenue by Segment
Company Sales Revenue
CapyFin.comFranchise Royalty Revenue
CapyFin.comFranchise Fees Revenue
CapyFin.comFranchise Rental Revenue
CapyFin.comAdvertising Funds Revenue
CapyFin.com Forward Guidance
The Company expects global systemwide sales growth of 5 to 6 percent, adjusted EBITDA of $535 to $545 million, adjusted earnings per share of $0.98 to $1.02, cash flows from operations of $370 to $390 million, capital expenditures of $90 to $100 million, and free cash flow of $280 to $290 million during 2024.
Positive Outlook
- Global systemwide sales growth: 5 to 6 percent
- Adjusted EBITDA: $535 to $545 million
- Adjusted earnings per share: $0.98 to $1.02
- Cash flows from operations: $370 to $390 million
- Capital expenditures: $90 to $100 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