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Wendy's (WEN) Reports Solid Q4 Preliminary Results, Stock Up
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The Wendy's Company (WEN - Free Report) reported preliminary results for fourth-quarter and fiscal-year 2022. The company also increased its quarterly dividend by 100% and approved a new share repurchase program. Following the results, the company’s shares increased nearly 6% on Jan 13. In the past three months, the company’s shares have gained 15.6%, compared with the industry’s increase of 12.7%.
Q4 & 2022 Preliminary Results
Per the company’s fiscal fourth-quarter preliminary results, global systemwide sales and same-restaurant sales improved 8.4% and 6.4% year over year, respectively. In 2022, global systemwide sales and same-restaurant sales improved 6.8% and 4.9%, year over year, respectively. In fourth-quarter and fiscal 2022, the company opened 78 and 276 stores globally, respectively.
In fiscal fourth-quarter 2022, total revenues increased 13.4% to $536.5 million. The company’s operating margin remained flat year over year to 14.5% while operating profit increased 9.2% to $84 million.
Adjusted EBITDA improved 20.3% year over year to $123.5 million. General and administrative expense decreased 6.4% year over year to $68.5 million.
Nelson Peltz, chief executive officer and a founding partner of Trian Fund Management, L.P. (Wendy's largest shareholder), and Wendy's non-executive chairman said, “Trian believes strongly in the future of Wendy's, is confident in the Company's growth plans and is strongly supportive of the capital allocation strategy announced today.”
Image Source: Zacks Investment Research
Dividend & Share Repurchase
The company increased its quarterly dividend by 100% to 25 cents per share. The dividend will be paid on Mar 15 to stockholders of record as of Mar 1.
The company's board of directors announced a fresh $500 million share repurchase program, which will expire in February 2027. The company has cancelled its previously announced $250 million share repurchase program, which was set to expire in February 2023.
The Zacks Consensus Estimate for TGLS’ 2023 sales and earnings per share (EPS) suggests growth of 11.2% and 9%, respectively, from the year-ago period’s estimated levels.
Wingstop currently carries a Zacks Rank #2. WING has a long-term earnings growth rate of 12%. Shares of WING have lost 5.9% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.4% and 16.3%, respectively, from the year-ago period’s estimated levels.
Domino's currently carries a Zacks Rank #2. DPZ has a long-term earnings growth rate of 12.6%. Shares of DPZ have declined 28.7% in the past year.
The Zacks Consensus Estimate for Domino's 2023 sales and EPS suggests growth of 3.8% and 17.2%, respectively, from the year-ago period’s estimated levels.
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Wendy's (WEN) Reports Solid Q4 Preliminary Results, Stock Up
The Wendy's Company (WEN - Free Report) reported preliminary results for fourth-quarter and fiscal-year 2022. The company also increased its quarterly dividend by 100% and approved a new share repurchase program. Following the results, the company’s shares increased nearly 6% on Jan 13. In the past three months, the company’s shares have gained 15.6%, compared with the industry’s increase of 12.7%.
Q4 & 2022 Preliminary Results
Per the company’s fiscal fourth-quarter preliminary results, global systemwide sales and same-restaurant sales improved 8.4% and 6.4% year over year, respectively. In 2022, global systemwide sales and same-restaurant sales improved 6.8% and 4.9%, year over year, respectively. In fourth-quarter and fiscal 2022, the company opened 78 and 276 stores globally, respectively.
In fiscal fourth-quarter 2022, total revenues increased 13.4% to $536.5 million. The company’s operating margin remained flat year over year to 14.5% while operating profit increased 9.2% to $84 million.
Adjusted EBITDA improved 20.3% year over year to $123.5 million. General and administrative expense decreased 6.4% year over year to $68.5 million.
Nelson Peltz, chief executive officer and a founding partner of Trian Fund Management, L.P. (Wendy's largest shareholder), and Wendy's non-executive chairman said, “Trian believes strongly in the future of Wendy's, is confident in the Company's growth plans and is strongly supportive of the capital allocation strategy announced today.”
Image Source: Zacks Investment Research
Dividend & Share Repurchase
The company increased its quarterly dividend by 100% to 25 cents per share. The dividend will be paid on Mar 15 to stockholders of record as of Mar 1.
The company's board of directors announced a fresh $500 million share repurchase program, which will expire in February 2027. The company has cancelled its previously announced $250 million share repurchase program, which was set to expire in February 2023.
The company currently has a Zacks Rank #4 (Sell).
Key Picks
Some better-ranked stocks in the Zacks Retail-Wholesale sector are Tecnoglass Inc. (TGLS - Free Report) , Wingstop Inc. (WING - Free Report) and Domino's Pizza, Inc. (DPZ - Free Report) .
Tecnoglass currently carries a Zacks Rank #2 (Buy). TGLS has a trailing four-quarter earnings surprise of 26.9%, on average. Shares of the company have gained 44.9% in the past year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for TGLS’ 2023 sales and earnings per share (EPS) suggests growth of 11.2% and 9%, respectively, from the year-ago period’s estimated levels.
Wingstop currently carries a Zacks Rank #2. WING has a long-term earnings growth rate of 12%. Shares of WING have lost 5.9% in the past year.
The Zacks Consensus Estimate for Wingstop’s 2023 sales and EPS suggests growth of 18.4% and 16.3%, respectively, from the year-ago period’s estimated levels.
Domino's currently carries a Zacks Rank #2. DPZ has a long-term earnings growth rate of 12.6%. Shares of DPZ have declined 28.7% in the past year.
The Zacks Consensus Estimate for Domino's 2023 sales and EPS suggests growth of 3.8% and 17.2%, respectively, from the year-ago period’s estimated levels.