Wendy's has shifted focus towards international growth, planning to expand from 1,300 to 2,000 locations outside the US by 2028. The dividend was cut to a more sustainable 67¢ in 2025, with a payout ratio of 50%-60%, aiming for long-term value return. Despite lower 2025 guidance, Wendy's aims for substantial growth, targeting $650-$700 million adjusted EBITDA and 8,300 units by 2028.
Wendy's is cutting its quarterly dividend from $0.25 to $0.14 per share to focus on deleveraging and investing in U.S. operations. The new capital allocation strategy includes $200 million in buybacks and reducing long-term debt to improve financial health and shareholder returns. FY 2025 guidance includes 2%-3% global sales growth, adjusted EBITDA of $550-$560 million, and free cash flow of $275-$285 million.
JPMorgan analyst John Ivankoe gives Wendy's Co WEN a Neutral rating, lowering the price forecast to $17 from $20.
The Wendy's Company (NASDAQ:WEN ) Q4 2024 Results Conference Call February 13, 2025 8:30 AM ET Company Participants Aaron Broholm - Head of Investor Relations Kirk Tanner - President and Chief Executive Officer Ken Cook - Chief Financial Officer Conference Call Participants Dennis Geiger - UBS David Palmer - Evercore ISI Jon Tower - Citi Brian Mullan - Piper Sandler Danilo Gargiulo - Bernstein Brian Bittner - Oppenheimer Chris O'Cull - Stifel Jim Salera - Stephens Andrew Charles - TD Cowen Eric Gonzalez - KeyBanc Rahul Krotthapalli - JPMorgan Jim Sanderson - Northcoast Research Christine Cho - Goldman Sachs Logan Reich - RBC Capital Markets Operator Good morning. Welcome to The Wendy's Company Earnings Results Conference Call.
The headline numbers for Wendy's (WEN) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Wendy's (WEN) came out with quarterly earnings of $0.25 per share, beating the Zacks Consensus Estimate of $0.24 per share. This compares to earnings of $0.21 per share a year ago.
Fast-food chain Wendy's posted better-than-expected fourth-quarter earnings and ended six quarters of same-restaurant sales shortfalls, offsetting soft guidance for 2025.
WEN's fourth-quarter 2024 results are likely to reflect a gain from robust same-restaurant sales, technological upgrades and international expansion.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Wendy's (WEN), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended December 2024.
Wendy's (WEN) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
DARIEN, IL – The old Darien Wendy's restaurant, which closed in early December, may get a new occupant, an official said Monday. "Wendy's is under contract," Dan Gombac, Darien's municipal services director, told the City Council. "When these bigger boys are out there, they don't disclose until the last minute what's coming in. But it sounds like it's going to be a restaurant of some type, whether it's fast food or white cloth." The old Wendy's is at the southwest corner of Route 83 and Plainfield Road, close to Hinsdale South High School. Asked about the old TFI Fridays building, Gombac said, "There's some rumbling going on." But he gave no details. TGI Fridays at 2201 75th St. closed its doors in December, a month after the chain filed for bankruptcy protection. The local restaurant was at Darien Towne Center, which includes Walmart. In December, Gombac told the council that both Wendy's and TGI Fridays were seeing a lack of sales.
The ongoing inflationary environment, rising labor costs and a decline in customer counts are weakening WEN's growth.