NASDAQ$WEN
Wendy's · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Wendy's performance was driven by robust sales growth and exceeded expectations, leading to restaurant-level margins above 20% and record profits.
Wendy's reported strong second-quarter results, driven by sales significantly exceeding expectations. The company increased its 2021 financial outlook across all key metrics and raised its 2025 global restaurant target to 8,500-9,000.
- Systemwide sales growth was 22.9% globally.
- Global same-restaurant sales growth was 17.4%.
- The company is targeting 8,500 to 9,000 global restaurants by 2025.
- The company increased its quarterly dividend by 20% to 12 cents per share.
Headline financials
Revenue & EPS history
Wendy's · Revenue · Quarterly
$493M
Revenue by segment
Wendy's · $493M total across 5 segments · Q2 2021
- Company-operated sales$194M+17.8%39.2%
- Franchise royalty revenue$120M+15.9%24.2%
- Advertising funds revenue$102M+30.9%20.7%
- Franchise rental income$60.9M+7.1%12.3%
- Franchise fees$17.1M—3.5%
Forward guidance
Wendy's provided its outlook for 2021, expecting global systemwide sales growth of 11-13%, adjusted EBITDA of $465-$475 million, adjusted EPS of $0.79-$0.81, cash flows from operations of $350-$370 million, capital expenditures of $80-$90 million, and free cash flow of $270-$280 million.
Tailwinds
- Global systemwide sales growth: 11 to 13 percent (excluding the impact of the 53rd week)
- Adjusted EBITDA: $465 to $475 million (including $25 million of incremental Company breakfast advertising spending)
- Adjusted earnings per share: $0.79 to $0.81
- Cash flows from operations: $350 to $370 million
- Free cash flow: $270 to $280 million
Headwinds
- Capital expenditures: $80 to $90 million
- 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, adjusted earnings per share and free cash flow.
- The company is unable without unreasonable effort to provide projections of net income, earnings per share or net cash provided by operating activities, or a reconciliation of those projected measures.
- Forward-looking statements are susceptible to a number of risks, uncertainties and other factors.
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 2021
-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
| Quarter | Report date | Reaction (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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