#United States #financial results #Wendy's #Dublin, Ohio #Fast Food

Wendy's Reports Robust Q4 and Full-Year Results

The Wendy's Company announced its earnings for the fourth quarter and the full year of 2024, showcasing strong financial performance and setting ambitious targets for 2025. In the fourth quarter, systemwide sales grew by 5.4%, totaling a remarkable $3.7 billion, with same-restaurant sales up by 4.3%. This growth reflects a continuing trend, as 2024 marked the 14th consecutive year of same-restaurant sales growth for Wendy’s.

For the entire year, Wendy's achieved a 3.1% increase in systemwide sales, amounting to $14.5 billion, buoyed by a 1.5% growth in same-restaurant sales. The company's total revenues for Q4 reached $574.3 million, with adjusted revenues improving to $459.3 million, representing a 6.4% increase. Annual revenues amounted to $2.2 billion, with adjusted revenues up by 2.0% to $1.8 billion.

Financial Performance Highlights

Wendy's net income for Q4 grew to $47.5 million, translating to diluted earnings per share of $0.23. Adjusted EBITDA also showed progress, rising by 8.6% to $137.5 million. For the full year, net income was $194.4 million, with diluted earnings per share touching $0.95. Adjusted earnings per share increased to $1.00, marking a year-on-year growth of 3.1%.

The company’s President and CEO, Kirk Tanner, expressed pride in the performance, emphasizing how Wendy's outpaced industry growth during the fourth quarter. This accomplishment underlines Wendy’s strategic initiatives focusing on growth and long-term shareholder value.

Updated Capital Allocation Policy

In addition to the solid performance, Wendy's updated its capital allocation policy, setting a target dividend payout ratio between 50% and 60% of adjusted earnings. The company announced plans for a significant share buyback, aiming to repurchase up to $200 million in shares throughout 2025. The upcoming quarterly dividend will be $0.25 per share, payable on March 17, 2025.

Global Expansion and Future Growth

Looking ahead, Wendy's is optimistic about continuing its global expansion. The company reported plans to open more franchise locations, particularly in the international markets, where sales grew significantly. In Q4, U.S. same-restaurant sales rose by 4.1%, while international same-restaurant sales saw an increase of 4.9%. Overall global revenue metrics are expected to remain strong as Wendy's leverages its brand and market strategy.

In 2025, Wendy's anticipates a systemwide sales growth projection of 2.0% to 3.0%. The adjusted earnings per share are expected in the range of $0.98 to $1.02, with an adjusted EBITDA forecasted between $550 million and $560 million.

Wendy's financial outlook emphasizes a commitment to enhancing shareholder value while supporting business growth initiatives. The company plans to return approximately $325 million to shareholders through dividends and share repurchases.

Conclusion

As Wendy's continues to evolve, its robust financial results and proactive capital strategies reflect a promising trajectory for the future. The commitment to growth, shareholder returns, and a clear focus on customer satisfaction positions the company strongly as it navigates the competitive fast-food landscape.