Wendy’s has disclosed a notable 13.6% surge in net income during the fourth quarter (Q4) of 2023, soaring to $46.9 million compared to $41.3 million in the corresponding period of the prior year.
The company attributed the growth to a gain from the early extinguishment of debt and an increase in operating profit.
Wendy’s total revenues for the quarter ending December 31, 2023, stood at $540.7 million, marking a modest increase of 0.8% from $536.5 million in the corresponding period of the previous year.
The company recorded an operating profit of $86.6 million for the quarter, reflecting a 3.1% increase from $84 million in the fourth quarter of 2022.
The improvement primarily resulted from increased franchise royalty revenue, reduced investment in breakfast advertising, and a decrease in general and administrative expenses.
Wendy’s diluted earnings per share experienced a notable increase of 21.1% to $0.23 from $0.19 in the corresponding quarter of the previous year.
Continue Exploring: Wendy’s appoints former PepsiCo executive Kirk Tanner as new CEO
The company’s adjusted earnings before interest, taxes, depreciation, and amortization for the quarter rose by 2.5% to $126.6 million from $123.5 million in the fourth quarter of 2022.
The company witnessed a 3.2% growth in system-wide sales globally, with a 2.3% increase in the US and a notable 9.7% rise in international markets.
Global system-wide sales increased from $3.39 billion in Q4 2022 to $3.49 billion in Q4 2023.
Regarding same-restaurant sales, Wendy’s noted a 1.3% global growth, with the US experiencing a 0.9% increase and international markets seeing a 4.3% rise in the fourth quarter of 2023.
Wendy’s company president and CEO Kirk Tanner stated, “The Wendy’s system delivered strong sales, profit and cash flow growth in 2023, all supported by progress on our strategic growth pillars.
“2023 marked the brand’s 13th consecutive year of global same-restaurant sales growth, highlighting the system’s consistent execution and strong franchisee alignment as the team continued to grow the beloved Wendy’s brand.
“The team also significantly accelerated digital sales, opened nearly 250 new restaurants across the globe, and expanded US company-operated restaurant margin to pre-Covid levels despite extreme inflationary headwinds in recent years.”
Continue Exploring: Wendy’s unveils exciting ‘Flavour Fresh’ range for Indian palates
