USA- Fast food giant Wendy’s has reported mixed performance in H1 2024, with total revenues increasing to US$1.1 billion in the reported half compared to US$1.09 billion reported in H1 2023, signaling resilience in a tough QSR market.
Sales slightly dipped to US$237.3 million in Q2 2024 compared to US$240.6 million in the same quarter last year. The fast food chain’s operating profit decreased from US$109.3 million in Q2 2023 to US$99.5 million in the reported quarter.
Wendy’s reported sales of US$462.7 million in H1 2024, a decline compared to US$468.6 million reported in H1 2023. The company also reported a decline in operating profit of US$180 million in H1 2024, a decline from US$193.8 million reported in H1 2023.
However, the company’s consolidated revenues increased to US$570.7 million in the reported quarter compared to US$561.6 million in the same quarter last year.
The company reported total revenues of US$1.1 billion in H1 2024, an increase from US$1.09 billion in H1 2023.
Franchise royalty revenue also grew to US$136.3 million in Q2 2024 compared to US$132.1 million in Q2 2023. Franchise fees and rental income also increased to US$21.4 million and US$60.5 million, respectively, in the reported quarter, compared to US$20.9 million and US$58 million in Q2 2023.
Franchisee rental income increased to US$118.6 million in the reported half, compared to US$115.8 million reported in the same half last year. Advertising funds revenue also increased to US$220 million in H1 2024 compared to US4115.8 million reported in the same half last year.
The company praised its performance despite a challenging market environment. Wendy’s acknowledged the chain’s resilience despite high inflation, which has raised costs and prices offered to customers.
Wendy’s, like many other QSR brands worldwide, has relied on value deals to attract a dwindling, cash-strapped customer base. Moving forward, the fast food giant has committed to continue with this value-driven strategy to consolidate market share.
Kirk Tanner, Wendy’s CEO and President, said, “Our industry-leading quality, exciting innovation, and compelling value will remain in focus as we continue to execute our customer-first approach and drive the restaurant economic model throughout the rest of the year and beyond.”
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