Wendy’s global sales rise by 10% to $3.3bn in Q1
The US chain had a strong start of the year with revenues increased by 8.2% to $528m (£418m)
Fast food chain Wendy’s has reported a 10% increase in global systemwide sales to $3.3bn (£2.6bn) during the first quarter of 2023.
International systemwide sales grew by 21% to $419m (£332m), compared to $360m (£285m) for the same period last year.
Revenues for the company increased by 8.2% to $528m (£418m), with a net income increase of 6.4% to $39.8m (£31.5m). Adjusted EBITDA in Q1 also increased by 17.5% to $125.6m (£99m).
Wendy’s said that the increase in revenues resulted primarily from higher sales at company-operated restaurants, an increase in franchise royalty revenue, and an increase in advertising funds revenue.
The increase in net income resulted primarily from an increase in operating profit and higher other income primarily driven by an increase in interest income.
For the rest of the year, the company expects global systemwide sales to grow by 6% to 8% and an adjusted EBITDA between $530m (£420m) and $540m (£428m).
President and chief executive officer Todd Penegor said: “Our strong first quarter results build on the momentum we created in 2022. We delivered our sixth consecutive quarter of double-digit global same-restaurant sales growth on a two-year basis driven in part by our compelling marketing programs, continued operational improvements, and the significant acceleration of our digital business.
“Our sales growth contributed to an over 250 basis point year-over-year expansion in the U.S. Company-operated restaurant margin. Our successful start to the year and clear alignment behind our strategic pillars give us confidence that we will deliver meaningful global growth for the remainder of 2023 and beyond.”