The Wendy’s Co. (WEN) reported on Wednesday that profit for the third quarter increased 23 percent from last year, driven by higher operating profit and double-digit revenue growth. Adjusted earnings per share topped analysts’ estimates by a penny, while quarterly revenues missed their estimates. The company also maintained its adjusted earnings guidance for the full-year 2022.
The results also had a favorable impact from the acquisition of 93 franchise-operated restaurants in Florida in the fourth quarter of fiscal 2021.
“We expanded our global footprint, held global digital sales mix at approximately 10%, and accelerated our US breakfast daypart over the course of the quarter following our first major menu innovation since launching,” said Todd Penegor, President and CEO.
For the third quarter, net income increased to $50.54 million or $0.24 per share from $41.17 million or $0.18 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $0.24 per share, compared to $0.19 per share last year.
On average, 26 analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the quarter. Analysts’ estimates typically exclude special items.
Total revenues for the quarter grew 13.3 percent to $532.57 million from $470.26 million in the same quarter last year. Adjusted revenue increased 15.2 percent to $429.0 million from last year. Global same-restaurant sales growth was 6.9 percent. Analysts expected revenues of $538.70 million for the quarter.
Revenue growth primarily reflected higher sales at company-operated restaurants driven by the favorable impact of the acquisition of 93 franchise-operated restaurants in Florida during the fourth quarter of 2021 and higher same-restaurant sales.
Looking ahead to fiscal 2022, the company now continues to project adjusted earnings in the range of $0.84 to $0.88 per share. The company now expects global systemwide sales growth of 6 to 7 percent, down from the prior forecast of 6 to 8 percent growth.
The Street is looking for earnings of $0.85 per share on revenues of $2.08 billion for the year.
The Company also announced the declaration of its regular quarterly cash dividend to 12.5 cents per share, payable on December 15, 2022, to shareholders of record as of December 1, 2022.
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