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

Executive summary

• Global systemwide sales grew 5.4% in Q4 2024 and 3%+ for the full year, with U.S. same-restaurant sales up 4.1% in Q4 and 1.4% for the year.

• International systemwide sales rose 11.3% in Q4 (constant currency) and 9% for the year, driven by net unit growth.

• Digital sales surged nearly 40% year-over-year, now representing 19% of global sales mix, with loyalty members up 25% to over 46 million.

• 276 new restaurants opened globally in 2024, marking the 14th consecutive year of global SRS growth.

• Breakfast sales outpaced the QSR burger category, growing over 6% for the year.

Financial highlights

• Q4 global systemwide sales increased 5.4% (constant currency) to $3.7B; U.S. SRS up 4.1%, international SRS up 4.9%.

• Q4 adjusted EBITDA rose 8.6% to $137.5M; adjusted EPS was $0.25, up 19% year-over-year.

• Full-year cash from operations was $355.3M; free cash flow reached $279M, up 1.7% year-over-year.

• Returned over $280M to shareholders via dividends and share repurchases in 2024.

• Q4 net income was $47.5M; full-year net income was $194.4M.

Outlook and guidance

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

• Quarterly dividend reduced to $0.14 per share starting Q2 2025; total expected dividend payout of $0.67 per share for the year.

• Up to $200M in share repurchases planned for 2025, with majority in early months.

• Plans to return up to $325M to shareholders in 2025 via dividends and share repurchases.

• Hosting Investor Day on March 6, 2025, to provide strategic vision and long-term outlook.