US restaurant chain Wendy’s has reported total revenues of $1.59bn for the preliminary results of the fiscal year ending 30 December 2018 (FY2018), compared to $1.22bn for the same period last year.
The increase in revenues was driven by an increase in sales at company-operated restaurants, as well as franchise royalty revenue and fees and rental revenue.
The quick-service restaurant also reported that increase in net income resulted primarily from the sale of its ownership interest in Inspire Brands for $450m, year-over-year decreases in system optimization related expenses, and adjusted EBITDA growth.
Operating profit of the company for FY2018 was $249.9m, compared to $214.76m for the same period the prior year.
Wendy’s president and CEO Todd Penegor said “We are proud of the progress we made in 2018 to strengthen our brand by ensuring more customers enjoy Wendy’s more often including expanding our number of restaurants, reimaging existing restaurants, and executing a well-balanced marketing approach that strives to drive profitable growth for our franchisees.
“Our resilient business model generated significantly higher cash in 2018, and we continued to reward shareholders by returning $350m through dividends and share repurchases.”
The quick service restaurant chain also reported adjusted EBITDA of $415.42m for the preliminary results of FY2018, compared to $406.2m for the same period last year.
Wendy’s opened 159 restaurants globally during 2018 and an increase of 77 net new units. It expects a growth of approximately 1.5% in net new restaurants globally this year.
Penegor added: “In 2019, we will continue to build our foundation for growth by executing a balanced marketing approach that resonates with today’s consumer, driving operational excellence across the organisation, investing in our consumer-facing digital capabilities and further developing our global growth strategy.”