DUBLIN, Ohio - Wendy's Company (NASDAQ:WEN) today announced its second-quarter financial results, reporting an adjusted earnings per share (EPS) of $0.28, which met analysts' expectations.
However, the company's revenue for the quarter fell short of estimates, coming in at $561.1 million compared to the consensus estimate of $577.15 million. Despite the revenue miss, the company's guidance for the full year 2024 is slightly above the analyst consensus, projecting an EPS of $0.98 to $1.02 against expectations of $0.99.
The fast-food chain experienced a modest global comparable sales growth of 0.8%, which was below the anticipated 2.4%. Wendy's stock saw a slight uptick of 1.4% following the release of the financial results and forward-looking guidance, indicating a cautiously optimistic market response.
President and CEO Kirk Tanner highlighted the company's commitment to quality, innovation, and value as key factors in driving same-restaurant sales growth and maintaining pace with the QSR burger category. Tanner also emphasized the focus on a customer-first approach and the drive to enhance the restaurant economic model for the remainder of the year and beyond.
In comparison to the same quarter last year, Wendy's reported a 1.6% increase in total revenues, driven primarily by an increase in advertising funds revenue and franchise royalty revenue, attributed to net new restaurant development and higher same-restaurant sales.
The decrease in U.S. Company-operated restaurant margin was primarily due to higher labor costs and customer count declines, although partially offset by a higher average check. General and administrative expenses saw a decrease, mainly resulting from lower incentive compensation accruals and outside professional services costs.
Wendy's also declared a quarterly cash dividend of 25 cents per share, payable on September 17, 2024, to shareholders of record as of September 3, 2024.
Looking ahead, Wendy's remains focused on its growth strategy, with the company expecting to achieve systemwide sales growth of 3 to 5 percent and adjusted EBITDA of $535 to $545 million for the full year 2024. The company also anticipates free cash flow of $275 to $285 million and capital expenditures of $90 to $100 million.
The company's share repurchase program also remains active, with 1.6 million shares repurchased for $27.3 million in the second quarter of 2024 and an additional 0.9 million shares for $15.6 million through July 25. As of that date, approximately $260.0 million remains available under the existing share repurchase authorization, which expires in February 2027.
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