Fri, May 2, 11:13 AM (17 days ago)
**The Wendy's Company (WEN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $523.5 million, down 2.1% from $534.8 million in Q1 2024. - **Net Income:** $39.2 million, down 2.8% from $42.0 million in Q1 2024. - **Operating Profit:** $83.1 million, up 1.9% from $81.2 million in Q1 2024. - **Profit Margins:** Operating margin at 15.9%, net margin at 7.5%. - **Cash Flow:** Net cash provided by operating activities was $85.4 million, down from $100.0 million in Q1 2024. **Key Metrics:** - **Same-Restaurant Sales:** Global same-restaurant sales decreased 2.1%, U.S. same-restaurant sales decreased 2.8%, and international same-restaurant sales increased 2.3%. - **Company-Operated Restaurant Margin:** Global margin was 14.3%, down 40 basis points from Q1 2024. - **Systemwide Sales:** Global systemwide sales decreased 1.1% to $3.39 billion. **Segment Performance:** - **Wendy’s U.S.:** Revenues decreased 3% to $429.6 million, segment profit decreased 3.8% to $121.0 million. - **Wendy’s International:** Revenues increased 5.8% to $34.7 million, segment profit decreased 12.2% to $9.4 million. - **Global Real Estate & Development:** Revenues flat at $59.1 million, segment profit increased 2.5% to $24.7 million. **Trends and Uncertainties:** - **Inflation and Commodity Costs:** Inflationary pressures on labor and commodity costs impacted results, with continued labor inflation expected. - **Digital Growth:** Digital sales increased to 20.3% of global systemwide sales. - **New Restaurant Development:** Added 68 net new restaurants across the system. **Future Operations Impact:** - **Stock Repurchases:** $124.1 million spent on repurchases in Q1 2025, with $110.9 million remaining under the authorization. - **Dividends:** Paid $49.4 million in dividends, with an expected total of $80.7 million for the remainder of 2025. - **Debt:** Maintained compliance with debt covenants, with a revolving line of credit for advertising fund operations. **Conclusion:** Wendy's Q1 2025 showed a decline in revenue and net income, impacted by inflation and commodity costs. However, the company continues to focus on digital growth and new restaurant development. The financial health remains stable with sufficient liquidity and compliance with debt obligations.