NASDAQ$WEN

Wendy's · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Wendy's reported results for the second quarter, noting the impact of the COVID-19 pandemic on its business.

Wendy's reported a decrease in revenues and adjusted revenues, primarily driven by lower sales at Company-operated restaurants and a decrease in franchisee royalty revenue due to the COVID-19 pandemic, which was partially offset by the positive impact of the Company’s new breakfast daypart in the U.S. U.S. same-restaurant sales accelerating to high-single digit growth in July, driven by the continued strength of our breakfast and digital businesses.

  • U.S. same-restaurant sales accelerated to high-single digit growth in July.
  • Breakfast in the U.S. performed very strongly in the second quarter at approximately 8% of U.S. systemwide sales.
  • U.S. digital sales in the second quarter were approximately 5% of U.S. systemwide sales, up from approximately 2.5% in fiscal 2019.
  • The Company repaid the $120 million outstanding balance on its revolving financing facility in July 2020.

Headline financials

Total Revenue

$402M

Previous: $435M-7.6%
EPS (adj)

$0.12

Previous: $0.18-33.3%
U.S. Same-Restaurant Sales Growth

-4.4%

Previous: 1.3%-438.5%
International Same-Restaurant Sales Growth

-18.4%

Previous: 3.9%-571.8%
Global Same-Restaurant Sales Growth

-5.8%

Previous: 1.6%-462.5%
Free Cash Flow

$24.9M

Previous: $32.4M-23.1%
Net Income

$24.9M

Previous: $32.4M-23.1%
Operating Income

$60.7M

Previous: $80.6M-24.7%
Gross Profit

$262M

Previous: $284M-7.9%
Cash & Equivalents

$338M

Previous: $426M-20.7%
Total Assets

$5.07B

Previous: $5.16B-1.8%
Stock-Based Comp

$4.79M

Previous: $4.99M-4.0%

Revenue & EPS history

Wendy's · Revenue · Quarterly

$402M

Q2 2020-7.6%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Wendy's · $402M total across 4 segments · Q2 2020

  • Company-operated sales
    $164M
  • Franchise royalty revenue
    $103M
  • Advertising funds revenue
    $78.1M
  • Franchise rental income
    $56.9M

Forward guidance

Due to the current unprecedented global market and economic conditions, the Company withdrew its outlook for the 2020 fiscal year that was issued on February 26, 2020 and its 2021-2024 long-term outlook that was provided at its Investor day in October 2019. The Company intends to provide an updated financial outlook when it can reasonably estimate the impact of the COVID-19 pandemic and changing market conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

+0.6%

Avg return

5 days after

-0.2%

Avg return

30 days after

52%

32 / 62 earnings

Positive

+10.3%

Q2 2019

Best reaction

-12.5%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-3.9%+17.8%-3.3%
Q4 2025+2.9%+12.5%-1.4%
Q3 2025+1.6%-1.1%-4.4%
Q1 2025+0.2%-5.8%-8.7%
Q4 2024+3.8%+5.4%+7.9%
Q3 2024-3.2%-2.7%-9.6%
Q2 2024-0.3%-1.0%-0.1%
Q1 2024+1.6%-0.8%-11.1%
Q4 2023-4.4%-6.8%-4.9%
Q3 2023+1.4%-0.9%+2.9%
Q2 2023-0.8%-0.6%-9.4%
Q1 2023+1.1%+3.7%-3.3%
Q4 2022+2.1%-1.0%-0.8%
Q3 2022+4.8%+0.4%+13.2%
Q2 2022+0.9%+0.2%-2.7%
Q1 2022-5.0%-3.9%+0.3%
Q4 2021-0.3%-5.3%-3.4%
Q3 2021-6.1%-4.8%-3.1%
Q2 2021+6.7%+7.4%+1.7%
Q1 2021-1.3%+1.9%+5.9%
Q3 2020-4.1%-3.1%-4.1%
Q2 2020-6.6%-7.7%-9.4%
Q1 2020+8.9%+12.3%+21.5%
Q4 2019-12.5%-14.5%-38.7%
Q3 2019+0.7%-0.2%+3.5%
Q2 2019+10.3%+7.7%+23.6%
Q1 2019+1.8%+0.9%+7.6%
Q4 2018+0.3%-3.1%-6.8%
Q3 2018-2.4%+2.2%+3.1%
Q2 2018+1.1%+3.4%+2.2%
Q1 2018-0.9%-1.4%+1.1%
Q4 2017+4.8%+3.2%+4.3%
Q3 2017-0.3%-2.7%+3.5%
Q2 2017+0.3%+1.4%-5.6%
Q1 2017+5.5%+6.8%+2.9%
Q4 2016-1.5%-1.5%-5.9%
Q3 2016+1.4%+5.1%+24.2%
Q2 2016-2.5%+0.6%+0.2%
Q1 2016-6.5%
Q4 2015-6.2%
Q3 2015+3.0%
Q2 2015-3.2%
Q1 2015+7.4%
Q4 2014+4.8%
Q3 2014+3.0%
Q2 2014+2.0%
Q1 2014-0.8%
Q4 2013-6.0%
Q3 2013-8.3%
Q2 2013+6.6%
Q1 2013-5.4%
Q4 2012+0.2%
Q3 2012+4.5%
Q2 2012-2.0%
Q1 2012-1.9%
Q3 2011-5.8%
Q2 2011+9.7%
Q1 2011+2.7%
Q4 2010+5.7%
Q3 2010-5.2%
Q2 2010-2.2%
Q1 2010-8.3%

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