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Wendy's (WEN) Reports Q1 Earnings: What Key Metrics Have to Say
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Wendy's (WEN - Free Report) reported $528.81 million in revenue for the quarter ended March 2023, representing a year-over-year increase of 8.2%. EPS of $0.21 for the same period compares to $0.17 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $525.77 million, representing a surprise of +0.58%. The company delivered an EPS surprise of +5.00%, with the consensus EPS estimate being $0.20.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 7095 versus the nine-analyst average estimate of 7130.99.
U.S. Same-Store Sales: 7.2% versus the seven-analyst average estimate of 7.03%.
Number of restaurants - Company-operated - Total: 414 versus 416.29 estimated by seven analysts on average.
Number of restaurants - Franchised - Total: 6681 versus 6717.27 estimated by seven analysts on average.
Same-stores sales - Systemwide - Wendys - YoY change: 8% versus 7.45% estimated by five analysts on average.
Revenues- Advertising funds revenue: $101.37 million versus the nine-analyst average estimate of $102.16 million. The reported number represents a year-over-year change of +9.6%.
Revenues- Sales at Company-operated restaurants: $227.95 million compared to the $227.19 million average estimate based on nine analysts. The reported number represents a change of +8.9% year over year.
Revenues- Franchise rental income: $57.81 million versus $58.41 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -0.1% change.
Revenues- Franchise royalty revenue: $122.15 million compared to the $151.15 million average estimate based on seven analysts. The reported number represents a change of -5.3% year over year.
Franchise fees: $19.53 million compared to the $15.82 million average estimate based on three analysts.
Systemwide sales- International: $419 million versus $411.10 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.4% change.
Systemwide sales- U.S. $2.95 billion versus the three-analyst average estimate of $2.71 billion. The reported number represents a year-over-year change of +8.6%.
Shares of Wendy's have returned +4.7% over the past month versus the Zacks S&P 500 composite's +0.4% 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.
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Wendy's (WEN) Reports Q1 Earnings: What Key Metrics Have to Say
Wendy's (WEN - Free Report) reported $528.81 million in revenue for the quarter ended March 2023, representing a year-over-year increase of 8.2%. EPS of $0.21 for the same period compares to $0.17 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $525.77 million, representing a surprise of +0.58%. The company delivered an EPS surprise of +5.00%, with the consensus EPS estimate being $0.20.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: 7095 versus the nine-analyst average estimate of 7130.99.
- U.S. Same-Store Sales: 7.2% versus the seven-analyst average estimate of 7.03%.
- Number of restaurants - Company-operated - Total: 414 versus 416.29 estimated by seven analysts on average.
- Number of restaurants - Franchised - Total: 6681 versus 6717.27 estimated by seven analysts on average.
- Same-stores sales - Systemwide - Wendys - YoY change: 8% versus 7.45% estimated by five analysts on average.
- Revenues- Advertising funds revenue: $101.37 million versus the nine-analyst average estimate of $102.16 million. The reported number represents a year-over-year change of +9.6%.
- Revenues- Sales at Company-operated restaurants: $227.95 million compared to the $227.19 million average estimate based on nine analysts. The reported number represents a change of +8.9% year over year.
- Revenues- Franchise rental income: $57.81 million versus $58.41 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -0.1% change.
- Revenues- Franchise royalty revenue: $122.15 million compared to the $151.15 million average estimate based on seven analysts. The reported number represents a change of -5.3% year over year.
- Franchise fees: $19.53 million compared to the $15.82 million average estimate based on three analysts.
- Systemwide sales- International: $419 million versus $411.10 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +16.4% change.
- Systemwide sales- U.S. $2.95 billion versus the three-analyst average estimate of $2.71 billion. The reported number represents a year-over-year change of +8.6%.
View all Key Company Metrics for Wendy's here>>>Shares of Wendy's have returned +4.7% over the past month versus the Zacks S&P 500 composite's +0.4% 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.