BUZZ-Wendy's edges higher on Q4 beat, co to buyback more shares in 2025

Reuters
13 Feb
BUZZ-Wendy's edges higher on Q4 beat, co to buyback more shares in 2025

** Burger chain Wendy's WEN.O shares up marginally at $14.30 premarket

** Co tops fourth-quarter revenue, profit estimates on promotions

** Q4 revenue of $574.3 million beats estimates of $563.6 million, while adj EPS of 25 cents tops estimates by 1 cent - LSEG

** Still, co forecasts full-year adj EPS in the range of $0.98 to $1.02, below estimates of $1.03; says forecast doesn't include any impact from new tariffs

** Consumer spending for food away from home expected to remain pressured; traffic in fast-food burger category expected to be flat to down 1% vs 2024 - WEN on post-earnings call

** Co reduces quarterly dividend to 50% to 60% payout vs fixed 25 cents per share, per quarter, and increases share repurchase program by up to $200 mln in 2025

** Will increase investment in unit development around the world in 2025, increase investment in technology

** Q4 same-store sales up 4.1% in the U.S., compared with 0.2% rise in Q3; co says benefited from promotions

** Analysts have also said burger chains such as Wendy's and Burger King QSR.TO gained market share in October as McDonald's MCD.N dealt with an E-Coli outbreak

** In 2024, WEN fell 16%

(Reporting by Juveria Tabassum in Bengaluru)

((Juveria.Tabassum@thomsonreuters.com;))

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