Wendy’s reports US$574.3M in Q4 2024 revenue, up 6.2% year-over-year

GLOBAL – Leading QSR company Wendy’s has reported revenues of US$574.3 million in Q4 2024, marking a 6.2% rise from US$540.7 million in the same period last year.

The increase in revenue was driven by higher franchise fees, company-operated restaurant sales, advertising funds revenue, and franchise royalty revenue.

Adjusted revenue for Q4 2024, which ended on December 29, 2024, rose by 6.4% to US$459.3 million. For the full year, revenue increased by 3%, reaching US$2.24 billion compared to US$2.18 billion in 2023.

The rise in full-year revenue was primarily attributed to an increase in advertising funds revenue, franchise fees, and franchise royalty revenue.

Net income for Q4 2024 was US$47.5 million, marking a 1.3% rise from US$46.9 million in Q4 2023. This increase was largely driven by higher operating profit, though it was partially offset by the prior year’s gain on early debt extinguishment and a higher effective tax rate.

However, for the full year, Wendy’s net income fell by 4.9% to US$194.4 million from US$204.4 million in 2023, primarily due to a decline in operating profit.

Operating profit grew by 10.9% in Q4 2024, reaching US$96 million, but declined by 2.8% for the full year to US$371.4 million.

The drop in annual operating profit was mainly attributed to additional investments in breakfast advertising, increased impairment from long-lived assets, higher depreciation and amortization, and rising general and administrative expenses.

These factors were partially offset by higher franchise royalty revenue, improved U.S. company-operated restaurant margins, and net franchise fees.

Adjusted earnings before interest, taxation, depreciation, and amortization (EBITDA) for Q4 2024 increased by 8.6% to US$137.5 million, while full-year adjusted EBITDA rose by 1.4% to US$543.6 million.

Reported diluted earnings per share (EPS) remained at US$0.23 for Q4 in both 2023 and 2024, while full-year EPS declined by 2.1% to US$0.95.

Adjusted EPS for Q4 2024 increased by 19% to US$0.25, and for the full year, it rose by 3.1% to US$1.

The company also reported a 5.4% increase in systemwide sales for Q4 2024, reaching US$3.7 billion, and a 3.1% rise for the full year, totaling US$14.5 billion.

Looking ahead to 2025, Wendy’s projects global systemwide sales growth between 2% and 3%.

Adjusted EPS is expected to range from US$0.98 to US$1.02, with adjusted EBITDA forecasted between US$550 million and US$560 million.

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