Summaries of Wendy’s earnings announcements
3rd Quarter 2018
Financial Highlights
- North America Sales Growth of 1.2%
- International Sales Growth of 13.2%
- North American same-restaurant sales growth -0.2%
- Net Restaurant openings of 37 (23 in North America)
- Board of Directors approves $120 million increase in share repurchase authorization; Company now has $249 million remaining for share repurchases
Updated Guidance
During 2018, the Company now expects:
- North American same-restaurant sales growth of approximately 1.0%
- Company operated restaurant margin of approximately 16.0 to 16.5%
- General and administrative expense of approximately $190 to $195 milion
- Adjusted EBITDA of approximately $415 to $420 million, an increase of approximately 6 to 8 percent compared to 2017 results
- Adjusted EBITDA margin of approximately 33 percent
- Depreciation and amortization expense of approximately $128 million.
- Adjusted tax rate of approximately 18 to 20 percent.
- Adjusted earnings per share of approximately $0.56 to $0.58, an increase of approximately 44 to 49 percent compared to recast 2017 results.
- Cash flows from operations of approximately $295 to $310 million.
- Capital expenditures of approximately $70 to $75 million.
- Free cash flow of approximately $225 to $235 million, an increase of approximately 34 to 38 percent compared to 2017.
- Commodity inflation of approximately 1 to 2 percent.
- Labor inflation of approximately 3 to 4 percent.
- Interest expense of approximately $120 million.
2nd Quarter 2018
Financial Highlights
- North America same-restaurant sales increase 1.9% (+5.1% on a two-year basis)
- 22nd consecutive quarter of positive same-restaurant sales
- 36 global restaurant openings during second quarter of 2018
- Company remains on target to achieve all 2018 financial guidance
Updated Guidance
The company continues to expect:
- North American same-restaurant sales growth of approximately 2.0 to 2.5 percent
- Commodity inflation of approximately 1 to 2 percent.
- Labor inflation of approximately 3 to 4 percent.
- Company-operated restaurant margin of approximately 17 to 18 percent.
- General and administrative expense of approximately $195 million.
- Adjusted EBITDA of approximately $420 to $430 million, an increase of approximately 8 to 10 percent compared to recast 2017 results.
- Adjusted EBITDA margin of approximately 33 to 34 percent.
- Interest expense of approximately $120 million. 5
- Depreciation and amortization expense of approximately $130 million.
- Adjusted tax rate of approximately 21 to 23 percent.
- Adjusted earnings per share of approximately $0.55 to $0.57, an increase of approximately 41 to 46 percent compared to recast 2017 results.
- Cash flows from operations of approximately $295 to $320 million.
- Capital expenditures of approximately $75 to $80 million.
- Free cash flow of approximately $220 to $240 million, an increase of approximately 29 to 41 percent compared to 2017.
The Company continues to expect to achieve the following goals by the end of 2020:
- Global systemwide sales (in constant currency and excluding Venezuela) of ~$12 billion.
- Global restaurant count of ~7,250.
- Global Image Activation of at least 70 percent.
- Adjusted EBITDA margin of 37 to 39 percent.
- Free cash flow of ~$300 million (capital expenditures of ~$65 million)
1st Quarter 2018
Financial Highlights
- North America same-restaurant sales increase of 1.6%
- 21st consecutive quarter of positive same-restaurant sales
- 33 global restaurant openings during first quarter of 2018
- Company repurchased 2.4 million shares for $39.4 million in first quarter
Updated Guidance
During 2018, the Company now expects:
- Depreciation and amortization expense of approximately $130 million.
- An adjusted tax rate of approximately 21 to 23 percent.
- Adjusted earnings per share of approximately $0.55 to $0.57, an increase of approximately 41 to 46 percent compared to recast 2017 results.
In addition, the company continues to expect:
- North America same-restaurant sales growth of approximately 2.0 to 2.5 percent.
- Commodity inflation of approximately 1 to 2 percent.
- Labor inflation of approximately 3 to 4 percent.
- Company-operated restaurant margin of approximately 17 to 18 percent.
- General and administrative expense of approximately $195 million.
- Adjusted EBITDA of approximately $420 to $430 million, an increase of approximately 8 to 10 percent compared to recast 2017 results.
- Adjusted EBITDA margin of approximately 33 to 34 percent.
- Interest expense of approximately $120 million.
- Cash flows from operations of approximately $295 to $320 million
- Capital expenditures of approximately $75 to $80 million.
- Free cash flow of approximately $220 to $240 million, an increase of approximately 29 to 41 percent compared to 2017.
Company continues to expect the following by 2020:
- Global systemwide sales (in constant currency and excluding Venezuela) of ~$12 billion.
- Global restaurant count of ~7,250.
- Global Image Activation of at least 70 percent.
- Adjusted EBITDA margin of 37 to 39 percent.
- Free cash flow of ~$300 million (capital expenditures of ~$65 million).
