The Wendy’s Company’s (Wendy’s) revenues during the first quarter (Q1) of 2023 increased by 8.2% to $528.8m, compared to $488.6m in the corresponding period of last year.
The company attributed the revenue increase to higher sales at company-operated restaurants and increased revenues from franchise royalty and advertising funds. These increases were primarily due to higher same-restaurant sales.
The net income rose to $39.82m during the quarter, compared to $37.4m during Q1 2022.
During the quarter, Wendy’s diluted earnings per share jumped by 11.8% to $0.19 from $0.17 in the year-ago quarter.
The adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) increased to $125.6m, an increase of 17.5% from $106.9m in the same period last year.
Wendy’s system-wide sales growth was 10% globally, 8.6% in the US and 21% in international markets during Q1 2023. The global system-wide sales increased from $3.07bn in Q1 2022 to $3.36bn in Q1 2023.
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The same-restaurant sales grew by 8% globally, 7.2% in the US and 13.9% in international markets.
Wendy’s president and CEO Todd Penegor said: “We delivered our sixth consecutive quarter of double-digit global same-restaurant sales growth on a two-year basis driven in part by our compelling marketing programmes, continued operational improvements and the significant acceleration of our digital business.
“Our sales growth contributed to an over 250 basis point year-over-year expansion in US company-operated restaurant margin. Our successful start to the year and clear alignment behind our strategic pillars give us confidence that we will deliver meaningful global growth for the remainder of 2023 and beyond.”
For full-year 2023, the company expects global system-wide sales growth to be between 6% to 8%. The adjusted EBITDA is estimated to be in the range of $530m to $540m.