Today, Wendy’s announced its Q3 earnings, showing reduced sales and profit in the third quarter as consumers continue to reduce their restaurant spending.
The fast food chain reported global systemwide sales were $3.5 billion, a decrease of 2.6%.
International systemwide sales grew 8.6% with growth across all regions. Same-restaurant sales fell 3.7%.
Revenues declined 3% to $549.5 million, with the company stating that the decrease in total revenue was mainly due to lower advertising funds revenue and lower franchise royalty revenue, partly offset by an increase in franchise fees.
In Q3, the company opened 54 new restaurants.
Ken Cook, Interim CEO of Wendy’s told investors, “Third quarter results were in line with our expectations, reflecting continued strength in our international business with 8.6% systemwide sales growth, the addition of 54 new restaurants globally and adjusted EBITDA growth.”
“In the U.S. our actions to drive operational excellence at Company-operated restaurants are delivering meaningful results. Comparable sales at Company-operated restaurants outperformed the system by 4% during the third quarter and a renewed focus on execution resulted in the successful launch of our new chicken tenders. We also launched Project Fresh, a comprehensive turnaround plan structured around brand revitalization, operational excellence, system optimization and capital allocation. We are acting with urgency to execute the operational and brand initiatives to drive AUV growth in the U.S., creating value for our franchisees and shareholders.”
Moving forward, the company reaffirmed its full-year earnings forecast of 82 to 89 cents per share. Analysts expect around 85 cents per share.
By CEO NA Editorial Staff
