News

Wendy's reports strong Q3

November 6, 2019

The Wendy’s Company reported Wednesday that systemwide sales growth were up 5.5% and that the brand opened 27 units during the third quarter, ending Sept. 29. The chain posted revenues of $437.88 million, surpassing the Zacks Consensus Estimate by 0.59% and topping consensus revenue estimates two times over the last four quarters.

"We delivered a strong quarter of sales and earnings growth, demonstrating that we are building an even stronger foundation for the Wendy's® brand," President and CEO Todd Penegor said in a company press release. "We remain relentlessly focused on executing our plan to accelerate same-restaurant sales and drive global restaurant expansion across the globe. We are well-positioned to drive growth in 2020 and beyond to achieve our vision of becoming the world's most thriving and beloved restaurant brand, and to become an accelerated, efficient growth company."

Q3 highlights

• North America comparable sales increased 4.4%.
• International sales up 9.2%.
• Adjusted EBITDA was $109.9 million vs. $105.4 million a year ago.

2020 Outlook

• Global systemwide sales of approximately $12-$12.5 billion.
• Adjusted EBITDA of approximately $425-$435 million.
• Free cash flow of approximately $235-$245 million, excluding the approximately $20 million tax-affected impact from the proposed settlement of the Financial Institutions case, which the company expects to occur in early 2020. Including the impact of the proposed settlement, the company expects free cash flow of approximately $215-$225 million.