Q1 2025 Wendy's Co Earnings Call Transcript
Key Points
- The Wendy's Co (WEN) opened 74 new restaurants globally in the first quarter, with over 60% of these openings occurring internationally, aligning with their long-term strategy.
- International same-restaurant sales grew by 2.3%, and systemwide sales increased by 8.9%, showcasing strong international performance.
- The company returned more than $173 million to shareholders through dividends and share repurchases, highlighting a commitment to shareholder value.
- The Wendy's Co (WEN) is investing in technology, including digital menu boards and AI order-taking, to enhance customer experience and restaurant productivity.
- The company is focused on strategic collaborations and innovations, such as the Thin Mint Frosty and upcoming Takis collaboration, to drive customer engagement and traffic.
- Global same-restaurant sales declined by 2.1%, leading to a 1.1% decrease in global system sales, reflecting challenges in the consumer environment.
- US same-restaurant sales were down 2.8%, driven by decreased traffic and adverse weather conditions impacting performance.
- The Wendy's Co (WEN) revised its full-year outlook, now anticipating global systemwide sales to be flat to down 2%, indicating a cautious approach due to market uncertainties.
- US company-operated restaurant margins contracted by 50 basis points year-over-year, affected by sales deleveraging, higher commodity costs, and wage inflation.
- The company faces pressure from a challenging consumer environment, with consumer confidence deteriorating and impacting demand, particularly among households earning below $75,000.
Good morning. Welcome to The Wendy's Company earnings results conference call.
(Operator Instructions)
You may begin your conference.
'-
Good morning and thank you for joining our fiscal 2025 first-quarter earnings conference call.
After this brief introduction, Kirk Tanner, President and Chief Executive Officer, will provide a business update, and then Ken Cook, Chief Financial Officer, will review our first quarter results and share our 2025 financial outlook and capital allocation priorities.
From there, we will open up the line for questions.
Today's conference call and webcast includes a presentation which is available on our Investor Relations website, ir.wendys.com.
Before we begin, please take note of the Safe Harbor statement that appears at the end of today's earnings release. This disclosure reminds investors that certain information we discuss today is forward-looking and reflects our current expectations
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