The following is a summary of the The Wendy's Company (WEN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Wendy's reported a Q1 global same restaurant sales growth of 90 basis points and International business reported 3.2% same restaurant sales growth.
The company's adjusted EBITDA increased 1.8% to around $128 million.
The company's 2024 expectations include a global same restaurant sales growth of 3% to 4%, a U.S. company-operated restaurant margin of 16% to 17%, and a year-end dividend of $1 per share.
Despite inflation, Wendy's had flat commodity costs, thanks to locked prices on 80% of its commodity basket.
U.S. Company margin was enhanced by 60 basis points compared to last year.
Business Progress:
Wendy's Q1 development progress saw the opening of 35 new restaurants globally, and they expect to achieve a net unit growth of 2%, which includes approximately 250 to 300 new restaurant openings by 2024.
The company reported a high level of digital adoption in the U.K., Canada, and much of their APMEA region and is on track to reach over $2 billion in digital sales this year.
Progress was noted in their digital platforms, with significant increases in loyalty sign-ups and average monthly users.
The company's U.K. operations saw improvement year-over-year, with an ambition to expand to 400 restaurants in the future.
Plans to expand into Ireland and Spain, while improving restaurant-level profitability and efficacy with franchisees, are in the pipeline.
Wendy's plans to invest heavily in breakfast advertising, pledging approximately $55 million split over 2024 and 2025.
More details: The Wendy's Co IR
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