Fast food chain The Wendy’s Company (NASDAQ: WEN) reported Q2 adjusted earnings of $0.28 per share, up by 16.7% year-over-year and higher than Street estimates of $0.27 per share.
The company’s revenues went up by 4.4% year-over-year in the second quarter to $561.6 million but fell short of analysts’ estimates of $566.24 million. Globally, Wendy’s systemwide sales grew by 6.9% in Q2.
President and CEO Todd Penegor commented, “We continued to drive significant profit expansion, supported by strong same-restaurant sales momentum, resulting in an over 200 basis point year-over-year increase in U.S. Company-operated restaurant margin.”
Wendy’s declared a regular quarterly cash dividend of $0.25 payable on September 15 to shareholders of record as of September 1, 2023.
In FY23, the company continues to expect systemwide sales to grow in the range of 6% to 8% while adjusted earnings are likely to be between $0.95 and $1 per share. Between 2024 and 2025, Wendy’s has projected systemwide sales to grow in mid-single digits while its free cash flows are likely to rise in high-single to low-double digits.
Analysts are cautiously optimistic about WEN stock with a Moderate Buy consensus rating based on eight Buys, 10 Holds, and one Sell.
