Operations

Wendy’s Q2 reveals healthy revenue boost

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August 9, 2023

Fast food burger chain Wendy's had a strong Q2 with total revenues hitting $561.6 million, compared to $$537.8 million million in Q2 of 2022 due to higher sales at company-operated restaurants, increased franchise royalty revenue and advertising revenue.

The operating profit was $109.3 million compared to $96.3 million a year ago. The company cited the royalty revenue and an increase in the U.S. company-operated restaurant margin as factors for the improvement, according to a press release.

Additional highlights included:

• U.S. company-operated restaurant margin was 17.3% in Q2 2023 compared to 15% in Q2 2022. The increase was primarily the result of a higher average check, partially offset by higher labor costs, customer count declines and higher commodity costs.
• Net income was $59.6 million compared to $48.2 million in Q2 2022 due primarily to an increase in operating profit and higher "other" income primarily driven by an increase in interest income, partially offset by a decrease in investment income.
• Adjusted EBITDA was $144.5 million in Q2 2023, compared to $132.9 million in Q2 2022. The increase resulted primarily from higher franchise royalty revenue and an increase in U.S. company-operated restaurant margin.

Looking outward for 2023 the company expects a 6% to 8% of global systemwide sales growth with capital expenditures of $75million to $85 million For the 2024-2025 time period, Wendy's projects systemwide sales growth of mid-single digits.