Latest news with #WEN
Yahoo
16-05-2025
- Business
- Yahoo
WEN Q1 Earnings Call: Wendy's Maintains Guidance Amidst Consumer Headwinds and Strategic Initiatives
Fast-food chain Wendy's (NASDAQ:WEN) met Wall Street's revenue expectations in Q1 CY2025, but sales fell by 2.1% year on year to $523.5 million. Its non-GAAP profit of $0.20 per share was in line with analysts' consensus estimates. Is now the time to buy WEN? Find out in our full research report (it's free). Revenue: $523.5 million vs analyst estimates of $524.9 million (2.1% year-on-year decline, in line) Adjusted EPS: $0.20 vs analyst estimates of $0.20 (in line) Adjusted EBITDA: $124.5 million vs analyst estimates of $122.5 million (23.8% margin, 1.7% beat) Management lowered its full-year Adjusted EPS guidance to $0.95 at the midpoint, a 5% decrease Operating Margin: 15.9%, in line with the same quarter last year Free Cash Flow Margin: 12.9%, up from 10.5% in the same quarter last year Locations: 7,308 at quarter end, up from 7,248 in the same quarter last year Same-Store Sales fell 2.1% year on year (0.9% in the same quarter last year) Market Capitalization: $2.3 billion Wendy's leadership attributed its first quarter results to a combination of challenging consumer conditions, adverse winter weather, and the impact of new promotional efforts. CEO Kirk Tanner highlighted that while global same-store sales fell, the company maintained U.S. traffic and dollar share, driven by product innovation such as the Thin Mint Frosty and ongoing emphasis on value. He pointed to international growth, notably in Canada and new markets like Australia, as a bright spot in the quarter's performance. Looking ahead, management lowered its full-year adjusted EPS guidance, citing ongoing uncertainty in consumer demand and broader industry traffic softness. Tanner emphasized that Wendy's is prioritizing operational improvements, increased digital engagement, and menu innovation to offset these pressures. He explained, 'We are focused on controlling what we can control and adapting to the current environment through both value and innovation,' while reiterating the company's commitment to net unit growth and expanded international presence. Wendy's first quarter was influenced by macroeconomic pressures and strategic programming, with management focusing on menu innovation and operational improvements to drive future growth and maintain competitiveness. Menu Innovation and Collaborations: The launch of new Frosty flavors and collaborations with brands such as Girl Scouts and Takis helped boost customer traffic temporarily, with further product tie-ins planned for summer and fall. Operational Excellence Initiatives: The company rolled out new training programs, doubled in-restaurant field visits, and introduced operational tools like menu item labels and delivery scales to improve order accuracy and customer satisfaction. Technology Investments: Management accelerated the deployment of digital menu boards and AI-based order-taking, aiming to enhance personalization and drive higher digital sales, which reached over 20% of total sales for the first time. International Expansion: Over 60% of new restaurant openings occurred in international markets, with record growth in Canada and early success in Australia, reinforcing Wendy's strategy to expand its global footprint. Franchisee Support and Benchmarking: A new system for collecting and benchmarking franchisee financials at the restaurant level was introduced, intended to drive operational best practices and improve franchisee profitability. Management expects continued consumer uncertainty to impact sales, but believes menu innovation, technology investments, and international expansion will support gradual improvement through the year. Customer Value and Promotions: The 100 Days of Summer campaign and ongoing value offerings are designed to attract price-sensitive consumers and drive frequency, especially as industry-wide QSR traffic remains pressured. Digital and Operational Enhancements: Expansion of digital ordering, loyalty features, and AI-driven tools is expected to improve efficiency and customer engagement, contributing to higher average order values and productivity. International Growth Focus: The pipeline of new international units and development agreements in markets such as Mexico, Chile, and Australia is central to Wendy's long-term growth strategy, providing diversification from U.S. market headwinds. Jeffrey Bernstein (Barclays): Pressed on whether Wendy's value platform needs to be refreshed in light of consumer pressure; CEO Kirk Tanner stressed a balanced approach with ongoing innovation and weekly value deals. David Palmer (Evercore ISI): Asked where the biggest improvements in customer experience are expected; Tanner cited investments in order accuracy and hospitality through operational tools and field resources. Dennis Geiger (UBS): Inquired about franchisee demand and the development pipeline; Tanner expressed confidence in both international and domestic growth, emphasizing ongoing pipeline visibility beyond 2025. Jon Tower (Citi): Sought details on Q1's sales softness and income cohort trends; management noted broad-based pressure, especially among households earning below $75,000, while reaffirming investment in growth initiatives. Sara Senatore (Bank of America): Questioned the impact of reduced advertising spend; CFO Ken Cook said share was maintained and emphasized a focus on in-restaurant experience to drive frequency. In the coming quarters, the StockStory team will be monitoring (1) the effectiveness of Wendy's 100 Days of Summer campaign in driving guest traffic and frequency, (2) execution of international expansion and new unit openings, and (3) progress in digital engagement and operational improvements such as AI order-taking and accuracy tools. We will also track developments in the competitive landscape and consumer spending patterns, which could influence near-term performance. Wendy's currently trades at a forward P/E ratio of 11.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
Washington Post
02-05-2025
- Business
- Washington Post
Wendy's: Q1 Earnings Snapshot
DUBLIN, Ohio — DUBLIN, Ohio — Wendy's Co. (WEN) on Friday reported first-quarter earnings of $39.2 million. On a per-share basis, the Dublin, Ohio-based company said it had net income of 19 cents. Earnings, adjusted for non-recurring costs, were 20 cents per share. The results met Wall Street expectations. The average estimate of 11 analysts surveyed by Zacks Investment Research was also for earnings of 20 cents per share.
Yahoo
22-04-2025
- Business
- Yahoo
1 Safe-and-Steady Stock to Own for Decades and 2 to Steer Clear Of
Stability is great, but low-volatility stocks may struggle to deliver market-beating returns over time as they sometimes underperform during bull markets. Choosing the wrong investments can cause you to fall behind, which is why we started StockStory - to separate the winners from the losers. That said, here is one low-volatility stock providing safe-and-steady growth and two that may not keep up. Rolling One-Year Beta: 0.22 Founded by Dave Thomas in 1969, Wendy's (NASDAQ:WEN) is a renowned fast-food chain known for its fresh, never-frozen beef burgers, flavorful menu options, and commitment to quality. Why Is WEN Not Exciting? 5.6% annual revenue growth over the last five years was slower than its restaurant peers Demand is forecasted to shrink as its estimated sales for the next 12 months are flat High net-debt-to-EBITDA ratio of 7× increases the risk of forced asset sales or dilutive financing if operational performance weakens At $12.70 per share, Wendy's trades at 12.3x forward price-to-earnings. To fully understand why you should be careful with WEN, check out our full research report (it's free). Rolling One-Year Beta: 0.74 With roots dating back to 1807 when Charles Wiley opened a small printing shop in Manhattan, John Wiley & Sons (NYSE:WLY) is a global academic publisher that provides scientific journals, books, digital courseware, and knowledge solutions for researchers, students, and professionals. Why Should You Sell WLY? Annual sales declines of 1.6% for the past five years show its products and services struggled to connect with the market during this cycle Flat earnings per share over the last two years underperformed the sector average Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.3 percentage points Wiley is trading at $41.65 per share, or 17.4x forward EV-to-EBITDA. Check out our free in-depth research report to learn more about why WLY doesn't pass our bar. Rolling One-Year Beta: 0.86 Spun out of Post Holdings in 2019, Bellring Brands (NYSE:BRBR) offers protein shakes, nutrition bars, and other products under the PowerBar, Premier Protein, and Dymatize brands. Why Will BRBR Beat the Market? Products are selling at a rapid clip as its unit sales averaged an outstanding 21.2% growth rate over the past two years Earnings per share grew by 30.9% annually over the last three years, massively outpacing its peers Stellar returns on capital showcase management's ability to surface highly profitable business ventures BellRing Brands's stock price of $73.21 implies a valuation ratio of 32.2x forward price-to-earnings. Is now the time to initiate a position? Find out in our full research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Axon (+711% five-year return). Find your next big winner with StockStory today for free.
