Wendy's has reported its fourth-quarter and full-year 2024 financial results, showcasing a robust performance that underscores the company's resilience and strategic focus. The fast-food giant achieved its 14th consecutive year of global same-restaurant sales growth, highlighting its consistent appeal to consumers.
Key Financial Highlights:
Systemwide Sales Growth: In Q4 2024, Wendy's experienced a 5.4% increase in global systemwide sales, totaling $3.7 billion. This growth was driven by a 4.3% rise in same-restaurant sales. For the full year, systemwide sales grew by 3.1%, reaching $14.5 billion, with a 1.5% increase in same-restaurant sales.
Revenue and Earnings: The company reported total revenues of $574.3 million for the fourth quarter, marking a 6.2% increase from the previous year. Adjusted revenues stood at $459.3 million, reflecting a 6.4% rise. Net income for Q4 was $47.5 million, with adjusted EBITDA at $137.5 million, an 8.6% improvement. Adjusted earnings per share for the quarter were $0.25, a notable 19.0% increase.
U.S. Market Performance: The U.S. segment saw a 4.5% growth in systemwide sales during the fourth quarter, with same-restaurant sales increasing by 4.1%. For the entire year, U.S. systemwide sales grew by 2.2%, and same-restaurant sales were up by 1.4%.
International Markets: Internationally, Wendy's achieved an impressive 11.3% growth in systemwide sales for Q4, with same-restaurant sales rising by 4.9%. Over the full year, international systemwide sales increased by 9.0%, and same-restaurant sales grew by 2.8%.
Strategic Initiatives and Outlook:
Wendy's has updated its capital allocation policy to support future growth initiatives. The company announced a new target dividend payout ratio of 50% to 60% of adjusted earnings and plans to repurchase up to $200 million of its shares in 2025. These moves aim to enhance shareholder value while providing the flexibility to invest in strategic opportunities.
Looking ahead, Wendy's is well-positioned to accelerate growth, with a clear roadmap focused on strengthening its global presence and delivering value to customers and shareholders alike.
For a detailed view of Wendy's financial performance and strategic plans, you can access the full press release here.
