WEN Earnings Prediction
The chart below shows how WEN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, WEN sees a +0.16% change in stock price 10 days leading up to the earnings, and a -1.68% change 10 days following the report. On the earnings day itself, the stock moves by -0.00%. This data can give you a slight idea of what to expect for the next quarter's release.
WEN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
574.27M
6.22%
1.33%
Gross Margin
50.44%
5.81%
1.29%
Operating Margin
17.81%
13.08%
12.15%
Net Margin
8.27%
-4.72%
-6.66%
EPS
0.23
0.00%
-8.00%
No Data Available
WEN Earnings Analysis
Wendys Co Corporation (WEN.O) Earnings Conference Call
Positive
Sales Performance Growth: Global system wide sales increased over 5% and same restaurant sales grew over 4% in Q4, demonstrating strong performance in the U.S. and international markets.
SpongeBob Anniversary Sales Boost: The collaboration with Paramount for SpongeBob's anniversary drove a remarkable 20% lift in same restaurant sales, showcasing effective marketing strategies.
Global Sales Expansion: Internationally, system wide sales grew 11% on a constant currency basis, highlighting successful expansion efforts and strong net unit growth.
Digital Sales Surge: Digital sales surged nearly 40% year over year, with loyalty member growth up 25%, indicating successful customer engagement and retention strategies.
Shareholder Value Commitment: Wendy's returned over $280 million to shareholders through dividends and share repurchases, reflecting strong cash flow and commitment to shareholder value.
Negative
Same Restaurant Sales Slowdown: U.S. same restaurant sales growth was only 1.4% for the full year 2024, significantly lower than the previous year's performance, indicating a slowdown in consumer demand.
Sales Decline Anticipation: The company anticipates a decline in same restaurant sales in the first quarter of 2025 due to industry traffic headwinds and adverse weather conditions, suggesting ongoing challenges in maintaining growth.
Modest EBITDA Growth Outlook: Adjusted EBITDA for 2025 is expected to increase only modestly to between $550 million and $560 million, reflecting limited growth potential amid a competitive market environment.
Restaurant Closure Impact: The decision to close underperforming restaurants in the fourth quarter is expected to negatively impact sales growth in 2025, highlighting the challenges in maintaining a robust restaurant portfolio.
Rising Operational Costs: General and administrative expenses are projected to rise to between $285 million and $290 million in 2025, indicating increased operational costs that could pressure profitability.
WEN FAQs
How does WEN typically perform around its earnings report dates?
Is Wendys Co (WEN) Q4 2024 Earnings Call Summary positive or negative?
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WEN Earning Call Sentiment
Earnings call transcript: Wendy's Q4 2024 beats EPS forecast, stock dips
WEN.O
-0.2%Positive
The earnings call highlights strong financial performance with a 5.4% increase in global systemwide sales, improved margins, and increased EBITDA. Additionally, the company plans significant shareholder returns through dividends and share repurchases, which are generally positive indicators. Despite some concerns about first-quarter SRS and economic headwinds affecting franchisee sentiment, the overall outlook remains optimistic with plans for unit growth and operational improvements. Given the market cap, the stock price is likely to see a moderate positive reaction, falling into the 'Positive' category.
