The Wendy’s Company (WEN) Q4 2024 earnings summary

Executive summary

• Global systemwide sales grew 5.4% in Q4 2024, with U.S. same-restaurant sales up 4.1% and international up 4.9%; full-year systemwide sales reached $14.5B, marking the 14th consecutive year of global same-restaurant sales growth.

• Opened 276 new restaurants globally in 2024, with net unit growth flat due to closures of underperforming locations.

• Digital sales grew nearly 40% year-over-year, now representing about 19% of global sales mix, and loyalty membership rose 25% to over 46 million.

• Updated capital allocation policy prioritizes growth investments, technology, and increased share repurchases, with a new dividend payout target of 50–60% of adjusted earnings.

• Introduced menu innovations and value offerings, including a limited-time Girl Scouts Thin Mints Frosty.

Financial highlights

• Q4 company-operated restaurant revenue grew 2.7% year-over-year to $232.8M; total Q4 revenues rose 6.2% to $574.3M.

• Franchise royalty revenue increased $6M to $133.8M; franchise fees rose $13.7M to $34.2M, mainly from termination fees.

• U.S. company restaurant margin was 16.5% in Q4, up 300 basis points year-over-year.

• Adjusted EBITDA for Q4 was $137.5M, up 8.6%; full-year Adjusted EBITDA was $544M.

• Adjusted EPS for Q4 was $0.25, up 19% year-over-year; full-year adjusted EPS was $1.00, up 3.1%.

• Free cash flow for 2024 was $279M, up 1.7% year-over-year.

Outlook and guidance

• 2025 guidance: global systemwide sales growth of 2–3%, net new unit growth of 2–3%, adjusted EBITDA of $550–$560M, adjusted EPS of $0.98–$1.02, free cash flow of $275–$285M, and capital expenditures of $100–$110M.

• U.S. company-operated restaurant margin expected around 16% ±50 bps.

• Up to $200M in share repurchases and up to $325M returned to shareholders planned for 2025.

• Quarterly dividend reduced to $0.14 per share, with a target payout ratio of 50–60% of adjusted earnings.