Wendy's Q4 Earnings Top Estimates, Plans Stock Buyback

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  • Wendy's Co WEN reported a fourth-quarter FY21 sales decline of 0.24% year-on-year, to $473.2 million, beating the consensus of $460.45 million.
  • Adjusted revenues decreased 2.3% to $373.4 million.
  • Systemwide sales in the U.S. fell 0.7%, and International increased 13.5%. Global same-restaurant sales growth was 7.3%.
  • The company-operated restaurant margin contracted by 310 basis points to 14.5%.
  • General and administrative expenses declined 8.5% Y/Y to $64.4 million.
  • The operating margin was 16.3%, and operating income for the quarter fell 2.1% Y/Y to $76.9 million.
  • Adjusted EBITDA decreased 10.3% Y/Y to $102.7 million.
  • Adjusted EPS of $0.16 beat the consensus of $0.15.
  • The company held $366.9 million in cash and equivalents as of January 2, 2022. Cash provided by operating activities for twelve months totaled $345.7 million.
  • Buyback: The company’s board approved a $100 million new share repurchase program.
  • The company recently increased the quarterly cash dividend rate by 4% to $0.125 from $0.12 per share, payable on March 15, 2022, to shareholders of record as of March 7, 2022.
  • Outlook: Wendy’s sees FY22 adjusted EPS of $0.87 - $0.91 versus the consensus of $0.89.
  • The company expects FY22 global systemwide sales growth of 6% to 8%.
  • Price Action: WEN shares are trading lower by 1.89% at $22.31 on the last check Tuesday.
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Posted In: EarningsNewsGuidanceDividendsBuybacksGeneralBriefs

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