Compared to Estimates, Wendy's (WEN) Q4 Earnings: A Look at Key Metrics

Zacks
13 Feb

Wendy's (WEN) reported $574.27 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 6.2%. EPS of $0.25 for the same period compares to $0.21 a year ago.

The reported revenue represents a surprise of +1.79% over the Zacks Consensus Estimate of $564.17 million. With the consensus EPS estimate being $0.24, the EPS surprise was +4.17%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Wendy's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Number of restaurants - Total: 7,240 versus the nine-analyst average estimate of 7,270.
  • Same-Restaurant - U.S. 4.1% versus 3% estimated by nine analysts on average.
  • Same-Restaurant - International: 4.9% compared to the 2.1% average estimate based on seven analysts.
  • Same-Restaurant - Global: 4.3% versus 3.4% estimated by six analysts on average.
  • Number of restaurants - US: 5,933 compared to the 5,963 average estimate based on five analysts.
  • Revenues- Advertising funds: $114.93 million versus the nine-analyst average estimate of $115.50 million. The reported number represents a year-over-year change of +5.5%.
  • Revenues- Franchise rental income: $58.56 million versus $58.47 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +3.2% change.
  • Revenues- Franchise royalty revenue and fees: $167.96 million versus the eight-analyst average estimate of $157.88 million. The reported number represents a year-over-year change of +31.4%.
  • Revenues- Franchise fees: $34.18 million versus $25.03 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +67% change.
  • Revenues- Franchise royalty: $133.79 million versus $133.49 million estimated by five analysts on average.
  • Systemwide sales- International systemwide: $495 million compared to the $493.44 million average estimate based on three analysts.
  • Systemwide sales- Total: $3.67 billion versus $3.65 billion estimated by three analysts on average.
View all Key Company Metrics for Wendy's here>>>

Shares of Wendy's have returned -6% over the past month versus the Zacks S&P 500 composite's +3.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

The Wendy's Company (WEN) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10