The Wendy's Co's gross profit for the
three
months ended in Mar. 2024 was €142 Mil. The Wendy's Co's gross profit for the trailing twelve months (TTM) ended in Mar. 2024 was €666 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. The Wendy's Co's gross profit for the
three
months ended in Mar. 2024 was €142 Mil. The Wendy's Co's Revenue for the
three
months ended in Mar. 2024 was €492 Mil. Therefore, The Wendy's Co's Gross Margin % for the quarter that ended in Mar. 2024 was 28.83%.
The Wendy's Co had a gross margin of 28.83% for the quarter that ended in Mar. 2024 => Competition eroding margins
During the past 13 years, the highestGross Margin % of The Wendy's Co was 49.14%. The lowest was 30.30%. And the median was 35.72%.
Warning Sign:
The Wendy's Co gross margin has been in long-term decline. The average rate of decline per year is -1.1%.
The Wendy's Co Gross Profit Historical Data
The historical data trend for The Wendy's Co's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of The Wendy's Co's Gross Profit
For the Restaurants subindustry, The Wendy's Co's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Wendy's Co's Gross Profit Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Gross Profit distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's Gross Profit falls into.
The Wendy's Co Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
The Wendy's Co's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was €666 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Wendy's Co (STU:TQK) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Wendy's Co had a gross margin of 28.83% for the quarter that ended in Mar. 2024 => Competition eroding margins
The Wendy's Co Gross Profit Related Terms
Thank you for viewing the detailed overview of The Wendy's Co's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
The Wendy's Company is the second-largest burger quick-service restaurant, or QSR, chain in the United States by systemwide sales, with $11.7 billion in 2022, narrowly edging Burger King ($10.3 billion) and clocking in well behind wide-moat McDonald's ($48.1 billion). After divestitures of Tim Hortons (2006) and Arby's (2011), the firm manages just the burger banner, generating sales across a footprint that spanned almost 7,100 total units in 30 countries as of year-end 2022. Wendy's generates revenue from the sale of hamburgers, chicken sandwiches, salads, and fries throughout its company-owned footprint, through franchise royalty and marketing fund payments remitted by its franchisees, which account for 94% of stores, and through franchise flipping and advisory fees.
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