Wendy's Mixed Q3: EPS Outlook Narrows Despite Revenue Beats, Sales Growth

The Wendy's Co (NASDAQ:WEN) shares are trading lower after the company reported third-quarter 2024 revenue growth of  2.9% year-over-year to $566.7 million, beating the analyst consensus estimate of $560.75 million.

Adjusted revenues increased 0.5% to $443.6 million. Systemwide sales in the U.S. rose 0.9%, and International increased 7.7%.

Global same-restaurant sales growth was 0.2%. U.S. company-operated restaurant margin was 15.6% (flat year-on-year).

Wendy’s strengthened its “digital and loyalty platforms,” CEO Kirk Tanner said.

Operating profit for the quarter declined 6.8% year over year to $94.7 million. Adjusted EBITDA was $135.2 million versus $139.2 million year over year.

Operating profit decreased due to increased breakfast advertising costs, higher depreciation, and higher general and administrative expenses.

Adjusted EPS of 25 cents