Wendys Q3 adjusted revenue misses estimates, hurt by weaker US demand
WEN•Wendys reported Q3 adjusted revenue of $435.6 million, below the $530.52 million analyst estimate, while adjusted EPS of $0.13 beat estimates. Global systemwide sales fell 5.9%, including a 7.6% decline in the U.S.
1. Revenue and sales
Wendys' Q3 adjusted revenue missed analyst expectations, while adjusted EPS and adjusted EBITDA beat estimates. Revenue was $435.6 million against a $530.52 million consensus; adjusted EPS was $0.13 versus $0.09 expected, and adjusted EBITDA was $113.4 million versus $100.22 million expected. Global systemwide sales fell 5.9%, led by a 7.6% U.S. decline.
2. Company outlook
The company attributed the sales decline to lower U.S. same-restaurant sales and fewer U.S. restaurants. It said lower traffic, higher labor and commodity costs weighed on U.S. restaurant margins. Wendys is implementing its multi-year Dave’s Way strategy and expects changes to its breakfast strategy could unlock up to $200 million in EBITDA; it also plans restaurant acquisitions and franchise transfers.
