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Wendy's Q1 2018 results show 21 straight quarters same-store sales growth

May 9, 2018

Hours McDonald's announced that all its U.S. Quarter Pounders are now made to order with fresh beef, Wendy's — the chain that has made "fresh beef" its hallmark — reported that its same-store sales grew for the 21st straight quarter in North America. Adverse weather, higher commodity prices and labor rate inflation, however,  worked to impact total same-store sales by 100 basis points, the company said.

Other Q1 results include:

• Q1 net income of $20.2 million.
• 33 Global restaurant openings, with slight decrease in net new-unit growth.
• Net income of 8 cents on a per-share basis.
• 8.5 cents-per-share quarterly dividend pays on June 1.
• 2.4 million shares repurchased for $39.4 million.

"We are pleased with our continued sales momentum in the first quarter, in the face of adverse impacts from weather. ..." President and Chief Executive Officer Todd Penegor said in a company press release. "We continue to make progress with Image Activation and remain on track to grow our global unit count by approximately 2 percent in 2018."

During 2018, the company now expects:

• Depreciation and amortization expense of approximately $130 million.
• An adjusted tax rate of approximately 21 to 23 percent.
• Adjusted earnings per share of approximately $0.55 to $0.57, an increase of approximately 41 to 46 percent compared to recast 2017 results.