Wendy's Reports Mixed Q2 Earnings; Boosts FY22 EPS Forecast

Wendy's Reports Mixed Q2 Earnings; Boosts FY22 EPS Forecast
  • Wendy's Co WEN reported second-quarter FY22 sales growth of 9% year-on-year to $537.80 million, missing the consensus of $539.96 million.
  • Adjusted revenues increased 10.7% to $432.9 million.
  • Global Systemwide sales improved 5.6%, with Systemwide sales in the U.S. rising 3.5% and International improving 22.7%. 
  • Global same-restaurant sales growth was 3.7%.
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  • The company-operated restaurant margin contracted by 580 basis points to 14.5%.
  • General and administrative expenses declined 2.3% Y/Y to $61.6 million.
  • The operating margin was 17.9%, and operating income for the quarter fell 24% Y/Y to $96.3 million.
  • Adjusted EBITDA increased 1.4% Y/Y to $132.9 million.
  • Adjusted EPS of $0.24 beat the consensus of $0.22.
  • The company held $796.6 million in cash and equivalents as of July 3, 2022. Cash provided by operating activities for the six months totaled $98.2 million.
  • The company's regular quarterly cash dividend of $0.125 per share is payable on September 15, 2022, to shareholders of record as of September 1, 2022.
  • Outlook: Wendy's sees FY22 adjusted EPS of $0.84 - $0.88 (prior view $0.82 - $0.86), above the consensus of $0.83.
  • The company continues to expect FY22 global systemwide sales growth of 6% to 8%.
  • Price Action: WEN shares are trading lower by 2.23% at $20.64 in premarket on the last check Wednesday.
  • Photo Via Company

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