Operations

Wendy's revenue at $1.9B in 2021

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March 1, 2022

Wendy's has released its financial results for the fourth quarter and full year 2021, according to a press release.

The fourth quarter and full-year 2020 results included the impact of a 53rd operating week, which affects all fourth quarter and full-year comparisons to 2021. The 53rd week resulted in the following impacts in 2020:

• Approximately 7% and 2% increase to global systemwide sales in the fourth quarter and full-year, respectively.
• Approximately $8 million increase to franchise royalties.
• Approximately $6 million increase to advertising revenue.
• Approximately $14 million in incremental company-operated restaurant sales; Approximately $2.5 million increase to company-operated restaurant margin.
• Approximately $2.5 million increase to general and administrative expense.
• Approximately $8 million in incremental operating profit.
• Approximately $2 million increase to interest expense.

Other highlights included:

• Global systemwide sales increased 0.8% in Q4 2021 and 9.8% in 2021.
• Total revenues were $473.2 million in Q4 2021, compared to $474.3 million in Q4 2020. The decrease was primarily driven by lapping the 53rd operating week in 2020 which resulted in an approximately $28 million impact. The company said revenues were up year over year driven by higher franchise fees and an increase in franchise royalty revenue and advertising funds, both of which were largely due to higher same-restaurant sales. These increases were partially offset by lower sales at Company-operated restaurants which was primarily due to the sale of the New York market during the second quarter of 2021, and lower franchise rental income as the result of the Company's acquisition of restaurants in the Florida market during the fourth quarter of 2021.
• Total revenues were $1.9 billion in 2021, compared to $1.7 billion in 2020. The increase was primarily driven by an increase in advertising funds, franchise royalty revenue, and sales at company-operated restaurants, all of which were largely due to higher same restaurant sales. These items were also negatively impacted by lapping the 53rd operating week in 2020. Revenues also benefited from higher franchise fees.
• Company-operated restaurant margin was 16.7% in 2021, compared to 14.9% in 2020. The increase was primarily the result of a higher average check, customer count increases, and lapping recognition pay during the second quarter in the prior year. These increases were partially offset by labor rate increases and higher commodity costs.

Wendy's also acquired 93 franchise-operated restaurants in Florida for $128 million in last December.

In 2022, Wendy's expects a global systemwide sales growth of 6% to 8%.