Q2 2024 Wendy's Co Earnings Call Transcript
Key Points
- The Wendy's Co (WEN) achieved system-wide sales growth of 2.6% and same-restaurant sales growth of 0.8% in Q2.
- Global digital sales grew by over 40% year-over-year, with a 17% global digital sales mix.
- The company opened 99 new Wendy's restaurants in Q2, a more than 20% increase compared to the first half of 2023.
- International segment delivered over 8% system-wide sales growth, driven by same-restaurant sales growth and net unit growth across each region.
- The Wendy's Co (WEN) has solidified its new restaurant pipeline, with plans to open 250 to 300 new units globally in 2024.
- U.S. company restaurant margin decreased by 80 basis points year-over-year to 16.5%, primarily due to increased labor costs and customer count declines.
- Adjusted EBITDA decreased by 1% to approximately $43 million, impacted by increased investment in breakfast advertising and lower U.S. company-operated restaurant margins.
- Free cash flow decreased due to increased capital expenditure and incremental investment in breakfast advertising.
- The company experienced a slight decline in traffic and a negative mix impact, with traffic down about 2% and a negative mix of more than 1%.
- The U.S. market faced challenges with labor and wage inflation, particularly in regions like California, impacting overall profitability.
Please stand by for streaming text. Portions of this transcript marked (technical difficulty) indicate audio problems. The missing text will be supplied if a replay becomes available.
(technical difficulty) Stations of non-GAAP measures to the most directly comparable GAAP measure at the end of this presentation or in our earnings release. On our conference call today are President and Chief Executive Officer, Kirk Tanner will give a business update; and our Chief Financial Officer, Gunther plush, will review our second quarter results and share our financial outlook with.
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Thanks. Good morning, everyone. The second quarter. Our restaurants across the globe continue to deliver system wide and same restaurant sales growth, reaching 2.6% and 0.8%, respectively. Our performance was competitive in the US with our dollar and traffic share holding steady with the QSR burger category during
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