MW Wendy's shares rise on better-than-expected Q1 adjusted earnings
Wendy's Co. $(WEN)$ shares rose 0.9% in premarket trades Thursday after the burger chain's first-quarter adjusted earnings beat analysts' estimates. Net income rose to $42 million, or 20 cents a share, from $39.8 million, or 19 cents a share, in the same period a year ago. Adjusted per-share earnings were 23 cents a share, above the 21-cent estimate from analysts surveyed by FactSet. Wendy's revenue rose to $534.8 million from $528.8 million in the same period last year. Analysts surveyed by FactSet were looking for revenue of $541 million. The fast-food chain said that the growth in revenue was driven by increase in advertising funds revenue and an increase in franchise royalty revenue, both driven by net new restaurant development and higher same-restaurant sales. Global same-restaurant sales growth was 0.9%, below analysts' forecast of 1.4%. "We delivered global same-restaurant sales growth, which accelerated by 120 basis points on a two-year basis versus the previous quarter," said Wendy's CEO Kirk Tanner, in a press release. "This was driven in part by high-single digit year-over-year U.S. breakfast sales growth and global digital sales mix of nearly 17%." Wendy's also reiterated its 2024 outlook for global systemwide sales growth of 5% to 6% and adjusted earnings of 98 cents to $1.02. Wendy's shares are up 0.7% in 2024, compared with the S&P 500 index's gain of 5.2%.
-James Rogers
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May 02, 2024 07:50 ET (11:50 GMT)
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