NASDAQ$WEN

Wendy's · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Wendy's reported mixed results for Q4 2023, with revenue increasing slightly but U.S. Company-operated restaurant margin declining.

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.

Headline financials

Total Revenue

$541M

Previous: $537M+0.8%
EPS (adj)

$0.21

Previous: $0.22-4.5%
U.S. Same-Restaurant Sales Growth

0.9%

Previous: 5.9%-84.7%
International Same-Restaurant Sales Growth

4.3%

Previous: 9.9%-56.6%
Global Same-Restaurant Sales Growth

1.3%

Previous: 6.4%-79.7%
Capital Expenditures

-$29.3M

No prior period
Net Income

$46.9M

Previous: $52.1M-10.0%
Operating Income

$86.6M

Previous: $76.9M+12.7%
Gross Profit

$149M

Previous: $171M-12.7%
Stock-Based Comp

$6.98M

Previous: $5.28M+32.1%

Revenue & EPS history

Wendy's · Revenue · Quarterly

$541M

Q4 2023+0.8%vs Q4 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Wendy's · $551M total across 5 segments · Q3 2023

  • Company-operated sales
    $235M
  • Franchise royalty revenue
    $130M
  • Advertising funds revenue
    $109M
  • Franchise rental income
    $57.6M
  • Franchise fees
    $19.3M

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.

Tailwinds

  • 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

Headwinds

  • 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

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 2023

Historical avgQ4 2023

-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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