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Compared to Estimates, Wendy's (WEN) Q4 Earnings: A Look at Key Metrics

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Wendy's (WEN - Free Report) reported $574.27 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 6.2%. EPS of $0.25 for the same period compares to $0.21 a year ago.

The reported revenue represents a surprise of +1.79% over the Zacks Consensus Estimate of $564.17 million. With the consensus EPS estimate being $0.24, the EPS surprise was +4.17%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

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: 7,240 versus the nine-analyst average estimate of 7,270.
  • Same-Restaurant - U.S. 4.1% versus 3% estimated by nine analysts on average.
  • Same-Restaurant - International: 4.9% compared to the 2.1% average estimate based on seven analysts.
  • Same-Restaurant - Global: 4.3% versus 3.4% estimated by six analysts on average.
  • Number of restaurants - US: 5,933 compared to the 5,963 average estimate based on five analysts.
  • Revenues- Advertising funds: $114.93 million versus the nine-analyst average estimate of $115.50 million. The reported number represents a year-over-year change of +5.5%.
  • Revenues- Franchise rental income: $58.56 million versus $58.47 million estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +3.2% change.
  • Revenues- Franchise royalty revenue and fees: $167.96 million versus the eight-analyst average estimate of $157.88 million. The reported number represents a year-over-year change of +31.4%.
  • Revenues- Franchise fees: $34.18 million versus $25.03 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +67% change.
  • Revenues- Franchise royalty: $133.79 million versus $133.49 million estimated by five analysts on average.
  • Systemwide sales- International systemwide: $495 million compared to the $493.44 million average estimate based on three analysts.
  • Systemwide sales- Total: $3.67 billion versus $3.65 billion estimated by three analysts on average.
View all Key Company Metrics for Wendy's here>>>

Shares of Wendy's have returned -6% over the past month versus the Zacks S&P 500 composite's +3.9% 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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