Wednesday August 7, 2019, 00:00:00
By Mark Kalinowski
Earlier today, Wendy’s (WEN; Neutral) reported second-quarter adjusted EPS of $0.18 — one cent above our $0.17 forecast and sell-side consensus (according to Consensus Metrix) of $0.17. We would note that D&A/Revenues came in at 7.2% actual vs. our 7.7% estimate, accounting for the $0.01 difference between the actual and our model. Given the one-cent EPS beat, we raise our full-year 2019E EPS estimate by one cent, to $0.64. (FYI, our full-year 2020E EPS forecast stays at $0.78.)
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Tuesday June 11, 2019, 00:00:00
By Mark Kalinowski
Not too long ago, Wendy’s (WEN; Neutral) filed its 500+ page Franchise Disclosure Document (FDD) for 2019. In this report, we cite some of the highlights from that document following our review of it, including our review of it in comparison to last year’s Franchise Disclosure Document. For example, we note that the median U.S. company-owned restaurant generated $1,868,693 in revenue last year (versus $1,830,565 in 2017), and that the median U.S. franchised restaurant generated $1,548,551 in revenue last year (versus $1,541,069 in 2017). The best-performing restaurant in the Wendy’s U.S. system overall — generating $4,714,549 in 2018 sales — is in Chicago. Our report also contains data regarding the sales lifts provided by the company’s Image Activation initiative, broken down by type of design. For franchised restaurants that underwent a Refresh — the most frequently chosen Image Activation format — that was completed during 2018, the median gross sales lift cited in the FDD is +4.6%. We reiterate our Neutral rating on WEN and note the following:
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Monday May 13, 2019, 00:00:00
By Mark Kalinowski
With this report, we increase our data-driven Kalinowski Quick-Service Burger Index for Q2E by +100 basis points to +3.3%. This figure is based on our latest proprietary checks/data as regards same-store sales performance for this segment during April 2019 and the beginning of May 2019.
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