NEW YORK - Wendy's Co (NASDAQ:WEN) reported first-quarter earnings that aligned with analysts' expectations on earnings per share (EPS), but the company's revenue fell short of estimates.
The fast-food chain announced an EPS of $0.21, which met the consensus estimate. However, revenue for the quarter was $528.81 million, missing the analyst projection of $540.83 million.
President and CEO Kirk Tanner highlighted the company's growth in global same-restaurant sales, which saw an acceleration of 120 basis points on a two-year basis compared to the previous quarter. Tanner attributed this growth to a robust increase in U.S. breakfast sales and a nearly 17% mix in global digital sales.
The improved sales performance contributed to a 60 basis point expansion in U.S. company-operated restaurant margin over the prior year. Tanner emphasized Wendy's focus on customer-centric strategies to drive long-term shareholder value.
For the full year 2024, Wendy's provided guidance for an adjusted EPS range of $0.98 to $1.02, with the midpoint of $1.00 directly in line with the consensus estimate. The company also declared a regular quarterly cash dividend of 25 cents per share, payable on June 17, 2024, to shareholders of record as of June 3, 2024.
Additionally, Wendy's repurchased 0.4 million shares for $7.2 million in the first quarter and continued its buyback program into the second quarter, purchasing 0.2 million shares for $4.3 million as of April 25.
The company continues to expect global systemwide sales growth of 5 to 6 percent for 2024, with adjusted EBITDA between $535 to $545 million, and free cash flow of $280 to $290 million. These projections underscore the company's confidence in achieving its 2024 outlook and advancing the Wendy's brand's potential.
While the stock movement was not available at the time of reporting, Wendy's maintains a solid financial strategy, including share repurchases and dividend payments, which may influence investor sentiment. Tanner's statement in the press release reaffirms the company's commitment to profitable initiatives and value creation for shareholders.
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