Wendys Q3 adjusted revenue misses estimates, hurt by weaker US demand
Overview
U.S. fast-food chain's Q3 adjusted revenue missed analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Global systemwide sales fell 5.9%, led by a 7.6% U.S. decline
Outlook
Wendys is implementing Daves Way, a multi-year strategy to grow traffic and market share
Company expects breakfast strategy changes could unlock up to $200 mln in EBITDA
Company plans restaurant acquisitions and franchise transfers to strengthen franchisee economics
Result Drivers
U.S. SALES DECLINE - Co said lower U.S. same-restaurant sales and fewer U.S. restaurants drove global sales decrease
LOWER ROYALTY REVENUE - Co attributed revenue decline mainly to lower franchise royalty revenue, partly offset by higher advertising funds revenue and more company-operated restaurant sales
MARGIN PRESSURE - Co said U.S. restaurant margin fell due to lower traffic, higher labor and commodity costs, partly offset by higher average check and labor efficiencies
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $547 mln | ||
Q3 Adjusted Revenue | Miss | $435.60 mln | $530.52 mln (15 Analysts) |
Q3 Adjusted EPS | Beat | $0.13 | $0.09 (21 Analysts) |
Q3 EPS | $0.08 | ||
Q3 Adjusted EBITDA | Beat | $113.40 mln | $100.22 mln (18 Analysts) |
Reuters Recommended Reads
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Nov 3 - Yum says Taco Bell rebounding after cyclosporiasis outbreak hit Q3 sales
Nov 4 - Applebee's owner Dine Brands beats Q3 sales estimates on value, menu innovation
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)