NORTH AMERICA – Fast food chain Wendy’s has reported a 13.4% decline in net income in Q3 2024 to US$50.2 million compared to US$58.04 million reported in the same quarter last year.
The company reported a drop in net income, mainly due to a reduction in operating profit and an increased effective tax rate.
For the quarter ending September 29, 2024, Wendy’s recorded total revenues of US$566.7 million, up 2.9% from US$550.5 million in the same period the previous year. This revenue growth was attributed to higher advertising funds, franchise royalty revenue, and franchise fees.
Operating profit for Q3 2024 was US$94.7 million, down by 6.8% from US$101.6 million in Q3 2023, primarily due to increased spending on breakfast advertising, higher general and administrative expenses, and rising depreciation costs.
During this quarter, Wendy’s global system-wide sales rose by 1.8%, with growth at 0.9% in the US and 7.7% in international markets. Same-restaurant sales increased by 0.2% globally and in the US, while international markets saw a 0.7% rise.
Adjusted EBITDA for Q3 2024 was US$135.1 million, a decrease from US$139.1 million in Q3 2023, largely due to increased breakfast advertising expenses and higher administrative costs.
In the second half of 2024, Wendy’s reported total revenues of US$1.67 billion, an increase from US$1.64 billion in H1 2023. Net income for the period declined to US$146.9 million from US$157.5 million in the previous year.
Kirk Tanner, Wendy’s president and CEO, noted that Wendy’s maintained sales growth during Q3, preserving its overall traffic and dollar share in the quick-service restaurant (QSR) burger segment.
Tanner emphasized that the company continued to strengthen its relationship with customers through digital and loyalty programs and achieved growth in breakfast and late-night offerings.
He expressed confidence in finishing the year strong with new programming focused on core menu items, innovative additions, and attractive value options.
Founded in 1969 by Dave Thomas, Wendy’s is a global QSR brand headquartered in Columbus, Ohio, known for its made-to-order square hamburgers, freshly prepared salads, and items like chili, baked potatoes, and the Frosty dessert.
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