Fast-food chain Wendy’s has reported a 9% increase in total revenue, to $537.8m, in the second quarter (Q2) of the year, compared to $493.3m in the same quarter of the previous year.
The increase was mainly due to high sales at company-operated restaurants and higher revenue from franchise royalty and advertising funds.
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Revenues also benefited from the acquisition of 93 franchise-operated restaurants in Florida in the fourth quarter of last year.
Adjusted revenue for the quarter increased to $432.9m, up 10.7% from $391.1m last year.
The company-operated restaurant margin decreased to 14.5% from the 20.3% reported in 2021.
This was mainly due to a decrease in customer count, higher commodity and labour costs, and the impact of Wendy’s investments to enter the UK market.
General and administrative expenses also decreased, from $63.1m last year to $61.6m this quarter, which was mainly due to less incentive compensation accrual.
Wendy’s reported that net income decreased to $48.2m, from $65.7m in the prior-year quarter, and the adjusted earnings per share for the quarter was $0.24 per share, compared to $0.27 per share last year.
In the second quarter of the year, the company also repurchased 2.8 million shares for a total deal value of $51.9m.
Wendy’s president and CEO Todd Penegor said: “We are proud of the entire Wendy’s system for delivering a third consecutive quarter of accelerating double-digit global same-restaurant sales on a two-year basis, which exceeded our expectations.
“This momentum contributed to a significant sequential company-operated restaurant margin expansion, highlighting the strength of the underlying business and our brand as well as our commitment to the restaurant economic model in a challenging environment.”
