News

Wendy's reports 0.2 percent drop in North American Q3 same-store sales

November 7, 2018

Wendy Q3 results for the quarter ending Sept. 30 show the brand had fewer-than-expected sales during the period, with North American same-store sales off 0.2 percent, though global same-store sales moved up 1.77 percent, according to a news release. 

Other key results include: 

• Net income was up, totaling $391.2 million, or $1.60 per share over $14.3 million, or 6 cents per share last year. 
• Adjusted EPS was 17 cents. 
• Revenue grew to $400.6 million, from $308.0 million last year.
• 1 percent expected increase in 2018 North American same-store sales growth.
• 56-58 cents expected adjusted EPS.

"Our third quarter results demonstrate Wendy's ability to maintain strong performance on the bottom line despite a challenging sales environment, and are a clear testament to our resilient business model," President and CEO Todd Penegor said in the release. "Our relentless focus on executing every element of The Wendy's Way by providing food our customers love, friendly service, value, and an inviting atmosphere will position us to win and drive profitable growth in the future."

In the third quarter of 2018, the company had 37 global restaurant openings, and an increase of 13 net new units, with expectation of approximately 1.5 percent global net new unit growth this year, comprised of approximately 1 percent growth in North America and approximately 10 percent international.

Other annual expectations for this year now include: 

• North America same-restaurant sales growth of approximately 1.0 percent.
• Company-operated restaurant margin of approximately 16.0 to 16.5 percent.
• General and administrative expense of approximately $190 to $195 million.
• Adjusted EBITDA of approximately $415 to $420 million, an increase of approximately 6 to 8 percent compared to recast 2017 results.
• Adjusted EBITDA margin of approximately 33 percent.