The Wendy’s Company (WEN) Q2 2024 earnings summary

Executive summary

• Global systemwide sales grew 2.6% year-over-year in Q2 2024, with same-restaurant sales up 0.8% and digital sales rising over 40% to a 17% mix.

• 99 new restaurants opened year-to-date, with a robust pipeline and net global restaurant count increasing by 13 in Q2.

• Net income declined 8.4% to $54.6M in Q2 2024, while company-operated restaurant margin fell to 16.5% due to higher labor costs and lower customer counts.

• Leadership and organizational changes were made to drive focus and accountability in U.S. and international segments.

• Focus remains on quality, innovation, and value to drive customer engagement and restaurant economics.

Financial highlights

• Q2 2024 revenue was $570.7M (+1.6% YoY); adjusted EBITDA was $143.1M, down 1% year-over-year.

• Net income for Q2 2024 was $54.6M, with diluted EPS at $0.27, down 3.6% year-over-year.

• U.S. company-operated restaurant margin was 16.5% in Q2, down 80 bps year-over-year.

• Free cash flow for H1 2024 was $124.4M, down 6.8% year-over-year; full-year guidance is $275M–$285M.

• G&A expenses decreased 1.9% year-over-year to $61.5M.

Outlook and guidance

• 2024 global systemwide sales growth expected at 3%–5%, with same-restaurant sales growth of 1%–3% and net unit growth of 2%.

• Adjusted EBITDA guidance remains $535M–$545M; adjusted EPS guidance reaffirmed at $0.98–$1.02.

• Free cash flow guidance is $275M–$285M; capital expenditures projected at $90M–$100M.

• U.S. company-operated restaurant margin guidance widened to 15%–17%.

• Management expects available cash and cash flows from operations to provide sufficient liquidity for the next 12 months.