News

Wendy's Q4 total revenues up 7.4%

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February 26, 2020

Better sales at Wendy's company-operated stores is credited mostly with the brand's increase in revenue last year, though higher labor and commodity costs and slower sales also decreased the margin for those stores, according to financial results released today. 

In Q4 2019, the company's net income grew to $26.5 million, or 11 cents a share, versus $18.8 million, or 8 cents a share in the same period of 2018. 

Other key highlights from the brand's Q4 2019 results, include:

• 7.4% increase in total revenues to $427.2 million.
• Operating profit down 19.9% to $36.5 million.
• Net income up 41% tp $26.5 million.
• Adjusted EPS up 37.5% to 11 cents. 

Fiscal year 2019 results include:

• 7.5% increase in total revenues to $1.7 billion.
• 5.1%increase in operating profit to $262.6 million.
• 70.2% drop in net income to $136.9 million.
• Adjusted EPS flat at 59 cents.
• Reported diluted EPS fell 69.1% to 58 cents. 

"We delivered a very strong year of sales growth and have laid the foundation in 2019 to set the Wendy's brand up for future success," President and CEO Todd Penegor said in the financial report. "We have momentum in our business as evidenced by our accelerating sales growth in the second half of the year, which sets us up well going into 2020.  

"Our focus remains on efficient, accelerated growth behind our three major growth pillars: entering the breakfast daypart, growing our digital business, and expanding our International footprint.  We are well positioned to drive growth in 2020 and I'm more confident than ever that we will achieve our vision of becoming the world's most thriving and beloved restaurant brand."