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Wendy's (WEN) Reports Q3 Earnings: What Key Metrics Have to Say
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For the quarter ended September 2023, Wendy's (WEN - Free Report) reported revenue of $550.56 million, up 3.4% over the same period last year. EPS came in at $0.27, compared to $0.24 in the year-ago quarter.
The reported revenue represents a surprise of -0.80% over the Zacks Consensus Estimate of $554.98 million. With the consensus EPS estimate being $0.26, the EPS surprise was +3.85%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Wendy's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Number of restaurants - Total: 7,166 compared to the 7,167 average estimate based on 10 analysts.
Same-Restaurant - U.S. 2.2% compared to the 3.5% average estimate based on nine analysts.
Number of restaurants - Company-operated - Total: 415 compared to the 416 average estimate based on eight analysts.
Number of restaurants - Franchised - Total: 5,607 compared to the 6,750 average estimate based on eight analysts.
Revenues- Advertising funds: $108.92 million versus $109.71 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.
Revenues- Sales at Company-operated restaurants: $234.72 million versus the 10-analyst average estimate of $237.20 million. The reported number represents a year-over-year change of +2.6%.
Revenues- Franchise rental income: $57.57 million versus the eight-analyst average estimate of $58.62 million. The reported number represents a year-over-year change of -1.5%.
Revenues- Franchise royalty: $130.09 million versus the eight-analyst average estimate of $149.56 million. The reported number represents a year-over-year change of +4.4%.
Revenues- Franchise fees: $19.26 million versus $17.47 million estimated by five analysts on average.
Systemwide Sales- International: $467.40 million versus $455.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.2% change.
Revenues- Global Real Estate & Development: $58.15 million versus $59.46 million estimated by four analysts on average.
Revenues- Wendy?s U.S: $457.24 million compared to the $461.83 million average estimate based on three analysts.
Shares of Wendy's have returned -1.7% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Wendy's (WEN) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended September 2023, Wendy's (WEN - Free Report) reported revenue of $550.56 million, up 3.4% over the same period last year. EPS came in at $0.27, compared to $0.24 in the year-ago quarter.
The reported revenue represents a surprise of -0.80% over the Zacks Consensus Estimate of $554.98 million. With the consensus EPS estimate being $0.26, the EPS surprise was +3.85%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Wendy's performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Number of restaurants - Total: 7,166 compared to the 7,167 average estimate based on 10 analysts.
- Same-Restaurant - U.S. 2.2% compared to the 3.5% average estimate based on nine analysts.
- Number of restaurants - Company-operated - Total: 415 compared to the 416 average estimate based on eight analysts.
- Number of restaurants - Franchised - Total: 5,607 compared to the 6,750 average estimate based on eight analysts.
- Revenues- Advertising funds: $108.92 million versus $109.71 million estimated by 10 analysts on average. Compared to the year-ago quarter, this number represents a +5.2% change.
- Revenues- Sales at Company-operated restaurants: $234.72 million versus the 10-analyst average estimate of $237.20 million. The reported number represents a year-over-year change of +2.6%.
- Revenues- Franchise rental income: $57.57 million versus the eight-analyst average estimate of $58.62 million. The reported number represents a year-over-year change of -1.5%.
- Revenues- Franchise royalty: $130.09 million versus the eight-analyst average estimate of $149.56 million. The reported number represents a year-over-year change of +4.4%.
- Revenues- Franchise fees: $19.26 million versus $17.47 million estimated by five analysts on average.
- Systemwide Sales- International: $467.40 million versus $455.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +13.2% change.
- Revenues- Global Real Estate & Development: $58.15 million versus $59.46 million estimated by four analysts on average.
- Revenues- Wendy?s U.S: $457.24 million compared to the $461.83 million average estimate based on three analysts.
View all Key Company Metrics for Wendy's here>>>Shares of Wendy's have returned -1.7% over the past month versus the Zacks S&P 500 composite's -1.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.