Fast-food restaurant The Wendy’s Company reported a net income of $50.2m for the third quarter (Q3) of 2024, a decrease of 13.4%, compared to $58.04m a year ago.
The company said the decrease in net income resulted primarily from a decrease in operating profit and a higher effective tax rate.
Go deeper with GlobalData
For the quarter ended 29 September 2024, the company’s total revenues were $566.7m, which is an increase of 2.9% compared to $550.5m in the same period last year.
The company attributed the growth in revenues primarily to increased advertising funds revenue, franchise royalty revenue, and franchise fees.
Operating profit for Q3 2024 was $94.7m, a decrease of 6.8% from $101.6m in the corresponding period of 2023.
The company’s operating profit fell mainly due to higher spending on breakfast advertising, increased general and administrative expenses, and rising depreciation costs.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataWendy’s global system-wide sales were 1.8%, 0.9% in the US, and 7.7% in international markets during Q3.
In the latest quarter, the company’s same-restaurant sales were 0.2% globally, as well as in the US and 0.7% in the international markets.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) for Q3 2024 was $135.1m, which is a decrease against $139.1m recorded in the same period of the previous year.
The decline in adjusted EBITDA was mainly due to the company’s increased spending on breakfast advertising and elevated general administrative costs.
For the second half (H2) of 2024, Wendy’s reported total revenues of $1.67bn, up from $1.64bn in H1 2023.
The company’s net income during the period was $146.9m, which declined compared to $157.5m in the same period a year ago.
The Wendy’s Company president and CEO Kirk Tanner said: “Wendy’s restaurants continued to deliver sales growth during the third quarter, maintaining overall traffic and dollar share in the QSR [quick-service restaurant] burger category.
“We continued to strengthen the relationship with our customers through our digital and loyalty platforms while driving growth for the breakfast and late-night dayparts.
“We expect to build on this progress into the close of this year with exciting new programming to showcase our craveable core, impactful innovation, and relevant value offerings.”
Wendy’s founder, Dave Thomas, opened the first Wendy’s restaurant in 1969.
The global QSR brand based in Columbus, Ohio, offers made-to-order square hamburgers, freshly prepared salads, and other items, including chilli, baked potatoes, and the Frosty dessert.
