Shares of the fast food chain, The Wendy’s Company (NASDAQ: WEN) inched up in pre-market trading at the time of writing on Wednesday after the company’s adjusted earnings grew 23.5% year-over-year to $0.21 per share in the first quarter beating consensus estimates of $0.20 per share.
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Wendy’s revenues rose 8.2% year-over-year to $528.8 million in Q1 while systemwide sales increased by 10% in Q1 and same-restaurant sales were up by 8%. Analysts were expecting Q1 revenues of $522.4 million.
The company also declared a quarterly dividend of $0.25 per share payable on June 15 to shareholders of record as of June 1, 2023.
Looking forward, the management expects global systemwide sales to grow in the range of 6% to 8% in FY23 with adjusted earnings forecasted to be between $0.95 and $1.00 per share versus consensus estimates of $0.98 per share. When it comes to its long-term outlook, Wendy’s expects global system-wide sales to be in the mid-single digits between 2024 and 2025 while free cash flow is likely to increase between high-single to low-double digits.
Analysts remain cautiously optimistic about WEN stock with a Moderate Buy consensus rating based on six Buys, 10 Holds, and one Sell.
