Wendy’s reports total revenues of $437.9m for Q3 2019

7th November 2019 (Last Updated November 7th, 2019 11:39)

The Wendy’s Company has reported total revenues of $437.9m for the third quarter of 2019, compared with $400.6 during the same period in 2018.

The Wendy’s Company has reported total revenues of $437.9m for the third quarter of 2019, compared with $400.6 during the same period in 2018.

The higher revenues was primarily due to higher sales at company-operated restaurants and an increase in franchise royalty revenue.

Revenues and adjusted revenues also benefited from a rise in franchise rental income driven by $10m in pass-through subleases payments.

The Wendy’s Company president and CEO Todd Penegor said: “We delivered a strong quarter of sales and earnings growth, demonstrating that we are building an even stronger foundation for the Wendy’s brand.

“We remain relentlessly focused on executing our plan to accelerate same-restaurant sales and drive global restaurant expansion across the globe.”

Systemwide sales growth for the quarter was at 5.5%. For the 2018 quarter, sales growth was at 1.2%.

During the quarter, the company had 40 restaurant openings worldwide and an increase of 24 net new restaurants.

The company continues to expect global net new restaurant growth of 1.5% in 2019.

At the end of the third quarter, Wendy’s noted that 56% of the global system was image-activated when compared to approximately 50% image-activated in 2018.

Penegor added: “We are well-positioned to drive growth in 2020 and beyond to achieve our vision of becoming the world’s most thriving and beloved restaurant brand, and to become an accelerated, efficient growth company.”

For 2020, the company aims to achieve global systemwide sales of $12bn to $12.5bn and adjusted EBITDA of approximately $425bn to $435m.

Additionally, Wendy’s expects free cash flow of $215 to $225m.