Wendy’s Reports Better Than Expected Q4 Results, Provides Guidance

Wendy's (NASDAQ:WEN) reported its Q4 results on Wednesday, with EPS of $0.22 coming in better than the Street estimate of $0.20. Revenue was $536.5 million, beating the Street estimate of $533.79 million.

The company provided its full 2023-year outlook, expecting EPS to be in the range of $0.95-$1.00, compared to the Street estimate of $1.00. Global systemwide sales growth is expected to grow in the range of 6-8%.

There were no major earnings surprises in the report, as the company preannounced its Q4 top-line and certain 2023 outlook items in mid-January. The key headline, however, was a reinstatement of long-term targets, including mid-single-digit system-wide sales growth and high-single-digit to low-double-digit free cash flow growth (both 2024 and 2025), along with increased visibility into the long-term development outlook.