News

Wendy's Q2 sales up, revenue down

August 7, 2019

Though burger QSR, Wendy's same-store sales grew slightly and topped predictions, revenue was off from estimates for the chain, which reported its second-quarter financial results today. 

Despite better-than-expected results at its main U.S. competitor of McDonald's this quarter, along with several new menu initiatives at Wendy's itself, revenues came in about $4 million under predictions at $435.3 million, which is 5.9% over last year's quarter, according to the brand's Securities and Exchange Commission second-quarter filing. 

Other key results include: 

•    1.4% same-store sales growth quarter-year over quarter-year. 
•    Global systemwide sales grew slightly to 3.3%.
•    8.4% increase in net income to $32.4 million.
•    Reaffirmation of 18-cent-per-share adjusted profit forecast. 

"We are executing on our plan to accelerate same-restaurant sales in North America and drive global restaurant expansion, fueled by a healthy restaurant economic model," said Wendy's President and CEO Todd Penegor. "Our relentless focus on bringing every element of The Wendy's Way to life by providing food our customers love, friendly service, value, and an inviting atmosphere will continue to drive growth in the future."

The increase in revenues and adjusted revenues was primarily driven by higher sales at company-operated restaurants and an increase in franchise royalty revenue, the company said. But company operated restaurant margin fell, attributed to labor rate inflation, customer count declines and higher commodity costs, partially offset by pricing actions.