The Wendy’s Shares Gain 6% on Preannounced Q4, $500 Million Repurchase & Dividend Hike

The Wendy's Company (NASDAQ:WEN) shares surged nearly 6% higher on Friday after the company pre-announced its Q4/22 results, with same-store-sales upside (up 5.9% vs. the Street's 4.3%). EBITDA of $123.5 million was ahead of the Street's estimate of $121 million.

The company announced that the company's board of directors has approved a new $500 million share repurchase authorization, which will expire in February 2027. The previous $250 million share repurchase authorization, set to expire in February 2023, has been canceled.

Additionally, the company raised its quarterly dividend by 100% to $0.25 per share, or $1 annualized, which will be payable on March 15, 2023, to stockholders of record on March 1, 2023. The annual yield on the dividend is 4.6%.