US burger chain The Wendy's Company has reported stable growth across all metrics in today’s second-quarter earnings call.
For the second quarter of 2023, Ohio-headquartered Wendy's reported revenues of US$540.2 million, marking a 17.4% increase from the US$460.3 million recorded in the second quarter of 2022.
This year-over-year growth in revenues was attributed mainly to higher sales at company-operated restaurants, a surge in franchise royalty revenue, and a boost in advertising funds revenue.
Wendy’s’ underlying earnings (EBITDA) for the second quarter stood at US$110.5 million, up from US$98.7 million in 2022, for underlying growth of 11.9%.
Operating profit for the period reached US$80.2 million, reflecting a 14.1% year-on-year growth rate.
Restaurant margins increased from 15% to 17.3% due to higher per-customer spend, though this was partially offset by higher labor costs, customer count declines, and higher commodity costs.
On the net income front, Wendy's reported a figure of US$50.3 million for the second quarter of 2023. This is a notable improvement from the US$42.2 million net income recorded in the second quarter of 2022, translating to a 19.2% year-over-year increase.
Adjusted earnings per share increased 16.7% to 28 cents.
For the full year, Wendy’s expects sales growth of 6-8%, with EBITDA ranging between US$530 million to US$540 million and adjusted earnings per share expected to be between US$0.95 to US$1.00.