Wendy’s has announced a 13.6% increase in net income for the fourth quarter (Q4) of 2023, reaching $46.9m, compared to $41.3m in the same period of the previous year.
The company attributed the growth to a gain from the early extinguishment of debt and an increase in operating profit.
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Wendy’s total revenues for the quarter ending 31 December 2023 were $540.7m, a slight rise of 0.8% from $536.5m in the same period of the previous year.
The company’s operating profit for the quarter was $86.6m, up 3.1% from $84m in the fourth quarter of 2022.
The improvement was primarily due to increased franchise royalty revenue, reduced investment in breakfast advertising and a decrease in general and administrative expenses.
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Wendy’s diluted earnings per share also saw a significant jump of 21.1% to $0.23 from $0.19 in the same quarter of the previous year.
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By GlobalDataAdjusted earnings before interest, taxation, depreciation and amortisation for the quarter rose by 2.5% to $126.6m from $123.5m in the fourth quarter of 2022.
The company experienced 3.2% growth in system-wide sales globally, with a 2.3% increase in the US and a notable 9.7% rise in international markets.
Its global system-wide sales grew from $3.39bn in Q4 2022 to $3.49bn in Q4 2023.
In terms of same-restaurant sales, Wendy’s reported a 1.3% growth globally, with the US seeing a 0.9% increase and international markets a 4.3% rise during the fourth quarter of 2023.
Wendy’s company president and CEO Kirk Tanner stated: “The Wendy’s® system delivered strong sales, profit and cash flow growth in 2023, all supported by progress on our strategic growth pillars.
“2023 marked the brand’s 13th consecutive year of global same-restaurant sales growth, highlighting the system’s consistent execution and strong franchisee alignment as the team continued to grow the beloved Wendy’s brand.
“The team also significantly accelerated digital sales, opened nearly 250 new restaurants across the globe, and expanded US company-operated restaurant margin to pre-Covid levels despite extreme inflationary headwinds in recent years.”
