NASDAQ$WEN

Wendy's · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

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

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.

Headline financials

Total Revenue

$427M

Previous: $398M+7.4%
EPS (adj)

$0.08

Previous: $0.16-50.0%
U.S. Same-Restaurant Sales Growth

4.5%

Previous: -0.1%+4600.0%
International Same-Restaurant Sales Growth

2.7%

Previous: 2.3%+17.4%
Global Same-Restaurant Sales Growth

4.3%

Previous: 0.1%+4200.0%
Net Income

$26.5M

Previous: $18.8M+40.9%
Operating Income

$36.7M

Previous: $45.8M-19.8%
Gross Profit

$140M

Previous: $154M-9.4%
Cash & Equivalents

$300M

Previous: $431M-30.4%
Total Assets

$4.99B

Previous: $4.29B+16.4%
Stock-Based Comp

$4.69M

Previous: $3.52M+33.3%

Revenue & EPS history

Wendy's · Revenue · Quarterly

$427M

Q4 2019+7.4%vs Q4 2018
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Wendy's · $536M total across 5 segments · Q4 2019

  • Company-operated sales
    $177M
  • Franchise royalty revenue
    $109M
  • Franchise fees
    $109M
  • Advertising funds revenue
    $85.5M
  • Franchise rental income
    $56.1M

Forward guidance

During 2020, the Company Expects:

Tailwinds

  • 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.

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 Q4 2019

Historical avgQ4 2019

-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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