Dublin, Ohio – Limited promotions and seasonal menu items have been successful, with Wendy’s Co. bolstering revenue for the fourth quarter of 2024.
In particular, last October, the promotions and corresponding theme menu for Spongebob SquarePants, including Pineapple-Flavored Frosty, have been compiled by Wendy’s opposite sales compared to one year ago, the company’s biggest monthly growth since 2021. Increased by 10%.
“In the US, (fourth quarter) growth was led to a successful collaboration with Paramount, celebrating SpongeBob’s 25th anniversary,” said Chief Executive Kirk Tanner. “At the peak, this fan favorite was increasing traffic and increased average checks to drive an impressive 20% lift at the same restaurant sales. Quarterly growth was evident in salted caramel frosty and mushroom bacon. It was also supported by the provision of innovative limited time such as cheeseburgers. Morning Daypart also increased sales by over 4% compared to the previous year, and was a strong contributor to US growth. .”
Wendy’s fourth quarter net income was $47.5 million, up 1.3% compared to the same period last year, but earnings per share were 25 cents. Systemwide’s sales increased by $3.7 billion (5.4% compared to last year, but adjusted total revenue was $459.3 million, up 6.4% year-on-year. US sales increased by 3.17 billion It accounted for 1,000 million dollars.
For the entire 2024 fiscal year ended December 29, 2024, Wendy’s saw the company’s 14th consecutive year’s global restaurant sales growth. Net income was $194.36 million, equivalent to 95¢ per share of common stock, down 5% from $204.44 million in fiscal year 2023 and 5% from 98 cents per share. The adjusted total revenue was $1.8 billion, 2% higher than last year. Overall system revenue was $14.5 billion, of which $12.6 billion came from the US, an increase of 3.1% compared to 2024.
Wendy’s breakfast focus also paid off in 2024. This is a rise in sales by more than 6% compared to last year, “over the QSR (quick service restaurant) burger category,” Tanner said. “Breakfast is still our number one priority at Wendy’s and will be driven by our growth. In 2025, we will invest in innovation to promote continued momentum around this daypart. Breakfast next We expect the growth stage to be driven by product innovation.
Tanner added overall menu innovation in 2024, with the final line including “sakhy nougs with expanded chicken offerings.” Additionally, new limited time frosty flavors tailored for each season have provided a fresh and exciting experience that resonated with our customers throughout the year. ”
2025 Outlook
To continue the momentum of new product sales in 2025, Wendy’s is working with Girl Scouts to offer a light mint flavoured frosty later this month. The company is also planning to continue evolving Wendy’s value menu known as the “Biggie Bag” by expanding further into the fast-growing category of chicken and drinks.
“We have plans to further strengthen our value leadership position through continuous innovation and strategic expansion of the Biggie Bag platform,” Tanner says. “We know our customers will continue to look for value throughout 2025. Wendy’s is uniquely set up to lead the needs of this important customer.”
Chief Financial Officer Ken Cook said factors other than menu innovation are likely to affect the company this year.
Photo: ©Biltster – stock.adobe.com“We began planning in 2025 after seeing multiple third-party forecasts, both from home and food away from industry traffic,” he said. “These show that consumer spending on food away from home remains under pressure, and traffic in the QSR Burger category is expected to fall flat by 1% compared to last year. 2025 The year’s outlook does not include the impact from new tariffs. Based on these forecasts, 2025 is about 2% to 3% driven by a combination of same-sex restaurant sales and new unit growth. Global system-wide sales growth is expected in 2025. Overall system-wide sales growth in 2025 will be negatively affected by actions taken in the fourth quarter closing low-performing restaurants and strengthening the system. I’m receiving it.”
Tanner added that Wendy’s 2025 outlook includes “around 1% product inflation and a wage rate of around 4%. As for products, beef is the largest year-on-year I think it will be a driving force, and I think we will see a bit of pressure from bacon, partially offset by improvements in other areas. At this point, we have a big impact on the cost of goods sold as a result of tariffs. It won’t have an impact, but that’s something we see a lot, and we’ve guided us to work with our partners at (high quality supply chain cooperatives) to see if there is. Headwinds towards something will be headwinds to doing what you can to offset it in other areas of the goods basket.”
Wendy’s adjusted earnings per share for 2025 are forecast between 98 cents and $1.02, but the company expects to pay 67 cents in dividends.
Digital sales
Wendy’s digital sales initiative took a step forward in 2024 through the company’s app. This is because global digital sales have increased by nearly 40% and loyalty members’ growth has increased by 25% compared to last year.
“We’ve also implemented digital menu boards in locations with over 300 companies and franchisees, and we’ve also made our digital journey,” Tanner says. “We have deployed voice-enabled AI orders in nearly 100 locations. We are pleased with the results we see by improving accuracy and promoting work efficiency. All of these areas Our execution at the company has provided higher average checks and labor efficiency, which has improved restaurant-level margins for global corporate operations at 80 bases compared to the previous year.”
After the revenue call, Wendy’s share price rose 3.8% to $14.76 per share. The company will further elaborate on some of its menu initiatives and the company’s strategy on upcoming Investor Day, set on March 6th.
