Wendy's Q3 Net Income Rises, Adj. Revenues Up 2.9%; Stock Surges

(RTTNews) - The Wendy's Company (WEN) reported third quarter net income of $58.0 million, an increase of 14.9% from last year. Earnings per share was $0.28 compared to $0.24. Adjusted earnings per share was $0.27 compared to $0.24. On average, 24 analysts polled by Thomson Reuters expected the company to report profit per share of $0.25, for the quarter. Analysts' estimates typically exclude special items.

Third quarter total revenues were $550.6 million, up 3.4% from prior year. Adjusted revenues were $441.6 million, an increase of 2.9%. Analysts on average had estimated $555.43 million in revenue. The company said the increase in revenues resulted primarily from higher sales at company-operated restaurants, an increase in franchise royalty revenue, and an increase in advertising funds revenue. The increases were primarily driven by higher same-restaurant sales, the company noted.

CEO Todd Penegor said: "Global same-restaurant sales accelerated on a 2-year basis and digital sales grew 30% versus the prior year, driving another quarter of company-operated restaurant margin expansion. Additionally, we have now opened 152 new restaurants across the globe this year."

During 2023, the company now expects: global systemwide sales growth of 6 to 7 percent. The company continues to expect adjusted earnings per share in a range of $0.95 to $1.00. The company maintained long-term outlook for 2024-2025.

Shares of The Wendy's are up 3% in pre-market trade on Thursday.

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