Wendy’s has reported revenue of $574.3m in the fourth quarter (Q4) of 2024, a 6.2% increase from $540.7m in the same period of the previous year.
The increase was driven by increases in franchise fees, company-operated restaurant sales, advertising funds revenue and franchise royalty revenue.
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Adjusted revenue for Q4 2024, which ended 29 December 2024, was $459.3m, up 6.4%.
Full-year 2024 revenue was $2.24bn, up 3% from $2.18bn in 2023.
The increase in revenues for FY24 was primarily due to an increase in advertising funds revenue, an increase in franchise fees and an increase in franchise royalty revenue.
Net income for Q4 2024 stood at $47.5m, up 1.3% from $46.9m in Q4 2023.
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By GlobalDataThe rise in net income for Q4 2024 was mainly driven by higher operating profit, partially offset by the previous year’s gain on early debt extinguishment and an increase in the effective tax rate.
For the full year ended 29 December 2024, Wendy’s net income was $194.4m, a decrease of 4.9% from $204.4bn in 2023.
The decrease in net income resulted primarily from the decrease in operating profit.
Operating profit grew 10.9% to $96m in Q4 2024 but declined by 2.8% for the full year 2024 to $371.4m.
The decline in FY24 operating profit was primarily due to the company’s incremental investment in breakfast advertising, an increase in impairment from long-lived assets, higher depreciation and amortisation (EBITDA), and higher general and administrative expenses. These were partially offset by higher franchise royalty revenue, US company-operated restaurant margin and net franchise fees.
Adjusted earnings before interest, taxation, depreciation and amortisation for Q4 2024 rose 8.6% to $137.5m, while for the full year 2024 it increased 1.4% to $543.6m.
Reported diluted earnings per share (EPS) for the fourth quarters of 2023 and 2024 was $0.23, while it dropped by 2.1% to $0.95 for the full year 2024. Adjusted EPS for the fourth quarter of 2024 increased 19% to $0.25, and increased by 3.1% to $1 for the full year 2024.
The fast-food giant also experienced a 5.4% increase in systemwide sales for Q4 2024, reaching $3.7bn, and a 3.1% increase for FY24, totalling $14.5bn.
Wendy’s president and chief executive officer Kirk Tanner stated: “I am proud of our fourth quarter performance, delivering a strong quarter while outpacing the category. This resulted in our 14th consecutive year of global same-restaurant sales growth.
“We are well positioned to accelerate growth, and we have a clear roadmap for Wendy’s future. I am excited about the opportunities ahead of us as we strengthen our system across the globe. Our new capital allocation policy will enable us to pursue these opportunities and maximise long-term shareholder value.”
In 2025, the company expects global systemwide sales growth of between 2% and 3%. Adjusted EPS is anticipated to be between $0.98 and $1.02, with adjusted EBITDA ranging from $550m to $560m.
