WENDY’S COMPANY Reports 61.2% Increase in Revenue and 13.4% Year Over Year Growth in Net Income for Fourth Quarter of FY2022
January 18, 2023
Earnings report
On December 31 2022, WENDY’S COMPANY ($NASDAQ:WEN) reported their earnings results for the fourth quarter of FY2022, ending on January 13 2023. The total revenue for the quarter was USD 84.0 million, a 61.2% increase from the prior year, reflecting a strong performance across all the company’s business segments. The reported net income was USD 536.5 million, a 13.4% year over year growth. This growth was mainly driven by an increase in same-store sales, as well as an increase in franchise and royalty income from new locations and remodels. This was mainly due to improved product offerings and increased customer demand for their products.
Overall, WENDY’S COMPANY reported a strong fourth quarter performance, with substantial increases in revenue and net income. The company’s initiatives to improve their product offerings and customer experience have paid off, resulting in a significant increase in sales and profitability. With the company’s strong performance in the fourth quarter of FY2022, they are well-positioned to continue their success into the coming year.
Share Price
On Friday, WENDY’S COMPANY reported a 61.2% increase in revenue and 13.4% year over year growth in net income for the fourth quarter of FY2022. This news resulted in an immediate 6.0% rise in stock price, with the stock opening at $21.4 and closing at $23.1. The strong revenue and income results were driven by strong performance across the company’s core businesses, including restaurant operations, franchise and licensing revenue, and other revenues. The strong financial results have made WENDY’S COMPANY one of the most successful restaurant companies in the industry.
The impressive fourth quarter performance has further strengthened the company’s position as a leader in the industry, and has solidified its position as a key player in the restaurant industry. With its strong financial results, WENDY’S COMPANY is well positioned to continue its growth and success in the future. Live Quote…
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 |
| 2.1k | 353.31 | 16.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Wendy’s Company. More…
| Operations | Investing | Financing |
| 251.74 | -154.67 | -242.74 |
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 |
| 5.52k | 5.09k | 2.05 |
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 |
| 7.0% | 7.7% | 17.0% |
| FCF Margin | ROE | ROA |
| 8.0% | 50.9% | 4.0% |
VI Analysis
Wendy’s Company is a medium risk investment according to the VI Risk Rating. The VI App provides an easy way to assess the fundamentals of the company and its long term potential. It takes into account income sheets, balance sheets, non financial aspects and other financial indicators. The VI App has identified three risk warnings in income sheet, balance sheet and non financial aspects. These warnings are indicators that the company may have some risk associated with it and is not suitable for all types of investors. The risk rating from the VI App is just one measure of a company’s long term potential. Investors should also consider other factors such as competitive landscape, industry trends, and other external factors before making any investment decisions. Overall, Wendy’s Company is a medium risk investment. Investors should carefully consider the overall fundamentals and risk warning from the VI App before making any decision regarding this company. More…
VI 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
Investing in Wendy’s Company has been highly profitable for investors over the past year. The company reported strong financial results for the fourth quarter of FY2022, ending on January 13 2023. Revenue for the quarter was USD 84.0 million, a 61.2% increase from the prior year, while net income was USD 536.5 million, a 13.4% year over year growth. This was reflected in the stock price which moved up the same day. The company has seen steady growth in both revenue and earnings in recent years, which has been driven by strong cost management and efficient capital allocation. The company has also benefitted from a favorable macro environment, as well as growth in its key markets.
Wendy’s has also invested heavily in technology and digital solutions to improve customer experience and drive further growth. Overall, Wendy’s Company appears to be a solid long-term investment option for investors. The company’s strong financials and strategic investments should continue to support its growth in the future. Investors should consider both the current and future potential of Wendy’s when making an investment decision.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
