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May 12, 2022

Wendy’s registers nearly 10% decline in Q1 profit

Total revenues increased by 6.2% to $488.6m and adjusted EBITDA fell by 11.6% to $106.9m.

American fast-food chain Wendy’s has posted a net income of $37.4m for the first quarter of 2022, down 9.6% from $41.4m a year ago.

On a per-share basis, the company’s profit was 17 cents.

For the quarter ended 3 April, the company’s revenues were $488.6m, an increase of 6.2% compared with $460m last year.

The hamburger chain attributed the rise in revenues to the higher sales at company-operated restaurants, driven by the acquisition of 93 franchise-operated restaurants in Florida, US, during the fourth quarter of 2021.

Wendy’s system-wide sales in the US during the quarter rose to $2.7bn, from $2.6bn in the year-ago period. Systemwide sales include sales at both company-operated and franchise restaurants.

The company’s system-wide sales in the international market were $360m, compared to $304m a year earlier.

During the quarter, the company’s operating profit also decreased from $83.1m in the first quarter of 2021, to $74.9m in this year’s first quarter.

Adjusted EBITDA fell by 11.6% to $106.9m, from $121m in the first quarter of 2021.

Commenting on the results, Wendy’s president and CEO Todd Penegor said: “We had one of our best quarters in our history for unit growth, with over 90 new restaurant openings, and are on track to reach our planned net unit growth goal of 5% to 6%for the year.

“We also competed well with Global same-restaurant sales up double digits once again on a two-year basis and increased our Global digital sales mix to over 10%. We are well-positioned to win in this volatile environment, with strong franchisee alignment behind our strategies and have strengthened our balance sheet with the successful debt raise transaction we recently completed.

“With sustained focus on executing against our key priorities, we are confident we will achieve our vision of becoming the world’s most thriving and beloved restaurant brand.”

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