Wendy’s Co WEN reported third-quarter FY22 sales growth of 13.3% year-on-year to $532.57 million, missing the consensus of $539.41 million. Adjusted revenues increased 15.2% to $429 million.
Global Systemwide sales improved 8.9%, with Systemwide sales in the U.S. rising 7.7% and International improving 18.3%.
Global same-restaurant sales growth was 6.9%. The company-operated restaurant margin contracted by 10 basis points to 14.3%.
General and administrative expenses rose 0.5% Y/Y to $62.5 million. The operating margin was 18.41%, and operating income for the quarter rose 22.4% Y/Y to $98.1 million.
Adjusted EBITDA increased 19.9% Y/Y to $134.5 million. Adjusted EPS of $0.24 beat the consensus of $0.23.
The company held $820.9 million in cash and equivalents as of October 2, 2022. Cash provided by operating activities year-to-date totaled $182.6 million.
The company’s regular quarterly cash dividend of $0.125 per share is payable on December 15, 2022, to shareholders of record as of December 1, 2022.
Outlook: Wendy’s continues to expect FY22 adjusted EPS of $0.84 – $0.88, versus the consensus of $0.85.
The company now expects FY22 global systemwide sales growth of 6%-7% (prior view 6%-8%).
Price Action: WEN shares are trading higher by 1.08% at $20.63 in premarket on the last check Wednesday.
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