Operations

Wendy’s Q1 builds on growth momentum

May 10, 2023

The Wendy's Company Q1 results build on the momentum the brand created last year and delivered the QSR's sixth consecutive quarter of double-digit global same-restaurant sales growth, according to CEO and President Todd Penegor.

The growth in the quarter, that ended April 2, was driven by "compelling marketing," as well as "significant acceleration" of the brand's digital business, according to a press release on the results.

Total revenues were $528.8 million compared to $488.6 million in the first quarter of 2022. The operating profit was $84.5 million in Q1 compared to $74.9 million in Q1 2022. The increase resulted primarily from higher franchise royalty revenue and an increase in U.S. company-operated restaurant margin, according to the release.

Systemwide sales growth in the U.S. was 8.6% and international was 21.0%. Same-restaurant sales growth in the U.S. was 7.2% and 13.9% on the international front.

Looking forward in 2023 the company expects:

• Global systemwide sales growth: 6% to 8%.
• Adjusted EBITDA: $530 to $540 million.
• Adjusted earnings per share: $0.95 to $1.00.
• Cash flows from operations: $340 to $360 million.
• Capital expenditures: $75 to $85 million.
• Free cash flow: $265 to $275 million.

Wendy's operates approximately 7,000 restaurants worldwide.