On November 2, 2023, The Wendy's Co (WEN, Financial) released its unaudited results for the third quarter ended October 1, 2023. The company reported significant progress across its strategic growth pillars, with a notable acceleration in global same-restaurant sales and a 30% growth in digital sales compared to the prior year.
Operational Highlights
According to the report, systemwide sales growth for Q3 2023 was 4.8% globally, 3.6% in the U.S., and 13.6% internationally. Same-restaurant sales growth was 2.8% globally, 2.2% in the U.S., and 7.8% internationally. The company also reported the opening of 72 new restaurants globally in Q3 2023, bringing the total number of new restaurants opened in 2023 to 152.
Financial Highlights
The Wendy's Co (WEN, Financial) reported total revenues of $550.6 million for Q3 2023, marking a 3.4% increase from Q3 2022. Adjusted revenues for the same period were $441.6 million, a 2.9% increase. The company's net income rose by 14.9% to $58.0 million, while adjusted EBITDA increased by 3.5% to $139.2 million. The company's reported diluted earnings per share for Q3 2023 were $0.28, a 16.7% increase from Q3 2022.
Company's Commentary
President and Chief Executive Officer Todd Penegor commented on the results, stating,
We continued to make meaningful progress across our strategic growth pillars during the third quarter. Global same-restaurant sales accelerated on a 2-year basis and digital sales grew 30% versus the prior year, driving another quarter of Company-operated restaurant margin expansion. Additionally, we have now opened 152 new restaurants across the globe this year and further solidified our development pipeline through significant new agreements in key growth markets. This success drives best in class franchisee satisfaction and alignment. We remain relentlessly focused on delivering meaningful global growth, supported by compelling restaurant economic model improvement and acceleration across our strategic pillars."
Dividend and Share Repurchases
The company declared a regular quarterly cash dividend of 25 cents per share, payable on December 15, 2023, to shareholders of record as of December 1, 2023. The company also repurchased 2.7 million shares for $56.1 million in the third quarter of 2023.
Explore the complete 8-K earnings release (here) from The Wendy's Co for further details.
