WENDY’S Company Reports 4.4% Increase in Total Revenue for Fiscal Year 2023
August 21, 2023
☀️Earnings Overview
For the fiscal year ending June 30 2023, WENDY’S COMPANY ($NASDAQ:WEN) reported total revenue of USD 561.6 million for the second quarter, a 4.4% increase from the same period one year prior. Net income was USD 59.6 million, showing a 23.8% year-on-year increase.
Analysis
GoodWhale has conducted an analysis of WENDY’S COMPANY‘s wellbeing and determined that it is strong in dividend and profitability, medium in growth, and weak in asset. Based on these findings, we classify WENDY’S COMPANY as a ‘gorilla’ type of company, which has achieved a stable and high revenue or earning growth due to its strong competitive advantage. This makes WENDY’S COMPANY an attractive prospect for investors interested in companies that boast high dividend payouts and excellent profitability. Moreover, WENDY’S COMPANY has a health score of 8/10, indicating that it is capable of safely riding out any crisis without the risk of bankruptcy. This robust performance is underpinned by its healthy cashflows and low debt levels. All of these qualities make WENDY’S COMPANY an attractive option for investors looking for both reliable returns and potential for growth. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Wendy’s Company. More…
| Total Revenues | Net Income | Net Margin |
| 2.16k | 191.27 | 9.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wendy’s Company. More…
| Operations | Investing | Financing |
| 303.21 | -77.93 | -320.31 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Wendy’s Company. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 5.35k | 4.96k | 1.86 |
Key Ratios Snapshot
Some of the financial key ratios for Wendy’s Company are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | 16.2% | 18.0% |
| FCF Margin | ROE | ROA |
| 10.1% | 59.8% | 4.5% |
Peers
In the quick-service restaurant industry, the Wendy’s Co. competes with McDonald’s Corp, Chipotle Mexican Grill Inc, and Yum Brands Inc. All of these companies are trying to attract customers with fresh, high-quality food at a reasonable price. Wendy’s Co. has an advantage over its competitors because it is a smaller company and can be more nimble in its response to customer trends.
– McDonald’s Corp ($NYSE:MCD)
McDonald’s Corp has a market cap of 187.28B as of 2022, a Return on Equity of -90.17%. McDonald’s Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand. The first McDonald’s franchise using the arches logo opened in Phoenix, Arizona in 1953. Businessman Ray Kroc joined the company as a franchise agent in 1955. He subsequently purchased the chain from the McDonald brothers and oversaw its worldwide growth.
– Chipotle Mexican Grill Inc ($NYSE:CMG)
Founded in 1993, Chipotle Mexican Grill is a chain of restaurants that primarily serves Mexican-style cuisine, including tacos and burritos. As of December 31, 2020, there were 2,724 Chipotle restaurants in the United States, Canada, the United Kingdom, France, and Germany. The company has a market cap of $43.03B as of 2022 and a return on equity of 27.52%.
– Yum Brands Inc ($NYSE:YUM)
Yum Brands Inc is a publicly traded American fast food company with more than 40,000 locations in over 140 countries. The company operates the brands KFC, Pizza Hut, and Taco Bell. Yum Brands is headquartered in Louisville, Kentucky.
Yum Brands Inc has a market cap of 31.59B as of 2022. The company has a Return on Equity of -15.87%. Yum Brands Inc is a publicly traded American fast food company with more than 40,000 locations in over 140 countries. The company operates the brands KFC, Pizza Hut, and Taco Bell. Yum Brands is headquartered in Louisville, Kentucky.
Summary
Investors may be pleased with WENDY’S COMPANY‘s second quarter earnings results for the 2023 fiscal year, which ended June 30 2023. Total revenue for the quarter was USD 561.6 million, a 4.4% increase compared to the same period in the previous year. Net income also increased year-over-year by 23.8%, coming in at USD 59.6 million. These results indicate strong performance in the quarter, and could be a sign of positive returns for investors in the near future.
