Wendy’s Company has reported a net income of $54.6m for the second quarter (Q2) of 2024, a slight decrease from $59.6m in the previous year.
For the period ending 30 June 2024, the company’s total revenues were $570.7m, an increase from $561.6m in the previous year.
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Sales saw a minor decline, totalling $237.3m compared to $240.6m in the same quarter of 2023.
The company experienced growth in franchise royalty revenue, which rose to $136.3m from $132.1m.
Franchise fees and rental income rose to $21.4m and $60.6m respectively, compared with $20.9m and $58.0m in the previous year.
Total costs and expenses for the quarter were $471.2m, an increase from $452.3m in 2023.
Wendy’s operating profit for the quarter was $99.5m, a decrease from $109.3m in Q2 2023.
For the first half (H1) of 2024, Wendy’s reported total revenues of $1.1bn, up from $1.09bn in H1 2023.
The company reported sales of $462.7m, down from $468.6m in the same period a year earlier.
However, franchise royalty revenue increased to $262m from $254.3m, and franchise fees rose to $42.2m from $40.4m.
Franchise rental income grew to $118.6m, compared to $115.8m, while advertising funds revenue improved to $220.0m from $211.2m.
Its operating profit for H1 2024 was $180.7m, down from $193.8m.
After a provision for income taxes of $35.6m, up from $34.7m, the company reported a net income of $96.6m for the first half of 2024, compared to $99.5m the year before.
The company declared a regular quarterly cash dividend of 25 cents per share and repurchased 1.6 million shares for $27.3m in the second quarter of 2024.
Wendy’s now expects global systemwide sales growth of 3% to 5%, cash flows from operations of between $365m and $385m, and free cash flow of $275m to $285m.
The company continues to expect adjusted EBITDA [earnings before interest, taxation, depreciation and amortisation] of $535m to $545m, adjusted earnings per share of $0.98 to $1.02, and capital expenditures of between $90m and $100m.
Wendy’s president and CEO Kirk Tanner said: “Our restaurants across the globe continued to deliver same-restaurant sales growth, holding steady with the QSR [quick service restaurant] burger category in the second quarter.
“Our industry-leading quality, exciting innovation and compelling value will remain in focus as we continue to execute our customer-first approach and drive the restaurant economic model throughout the rest of the year and beyond.”
