Wednesday June 28, 2023, 07:02:00

WEN: Updating Our Forecasts

By Mark Kalinowski

Wendy’s first-quarter U.S. same-store sales rose by +7.2%, coming in better than consensus. On its May 10th conference call, Wendy’s commented “We remain fully committed to driving the restaurant economic model through our three long-term growth pillars; driving sales momentum, accelerating our digital business and expanding our global footprint. This commitment, and our successful start to the year, give us confidence that we will deliver meaningful global growth for the remainder of 2023 and beyond…. As we turn to the second quarter, we will promote products across a variety of price points and occasions with dedicated messaging behind our ownable Biggie Bag platform, the return of the fan-favorite Strawberry Frosty and bringing the heat like only Wendy’s can with the addition of the Ghost Pepper Ranch Chicken Sandwich to our Made to Crave lineup. We also have plans in place to accelerate our momentum at the bookends of the day; breakfast and late night.”

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Wednesday May 10, 2023, 09:39:15

WEN: The Difference Between Wendy’s and Windows is Wendy’s is Never Frozen

By Mark Kalinowski

Earlier today, Wendy’s reported first-quarter adjusted EPS of $0.21. This matched our $0.21 forecast, and is one cent above sell-side consensus (according to Consensus Metrix) of $0.20. First-quarter adjusted EBITDA amounted to $125.6 million. This was above our $122.9 million estimate and consensus of $121.6 million.

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Tuesday March 7, 2023, 07:00:00

WEN: Could Wendy’s Raise its Royalty Rate at Some Point, Over Time?

By Mark Kalinowski

On its March 1st conference call, Wendy’s management commented that “we are building upon this foundation with the launch of our new Pacesetter development incentive program in the U.S. and Canada. Pacesetter will approximately double the incentive offered in our previous program, while increasing the royalty rate for new restaurants built under these development agreements to 5%.”

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