Wendy’s Revenue and Analysts’ Estimate for 4Q17


Feb. 26 2018, Updated 1:10 p.m. ET

4Q17 performance

In 4Q17, Wendy’s (WEN) posted revenue of $309.3 million, which represents a fall of 0.2% from $309.9 million in 4Q16. Analysts were expecting the company to post revenue of $315.3 million. Wendy’s failed to meet analysts’ revenue estimates due to lower-than-expected SSSG (same-store sales growth), which we’ll look at in the next part of this series.

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Analyzing Wendy’s revenue across segments

In 4Q17, Wendy’s company-owned restaurants posted revenue of $154.9 million, which represents a fall of 10.8% from $173.6 million in 4Q16. The segment operated 90 fewer restaurants at the end of 4Q17 compared to the beginning of 4Q16. However, some of the declines were offset by positive SSSG.

Revenue from its franchised restaurants segment has increased 13.2% to $154.4 million in 4Q17, from $136.4 million in 4Q16. The growth in franchise royalty revenue, fees, and rental income due to the addition of new franchised restaurants led to an increase in the segment’s revenue. Compared to the beginning of 4Q16, the segment operated 221 more franchised restaurants at the end of 2017.

In 2017, the company has increased its unit count by 32 restaurants in North America and by 65 restaurants in its international markets.

Peer comparisons

During the same period, Restaurant Brands International (QSR) posted revenue growth of 11.1%, while revenue for McDonald’s (MCD) and Jack in the Box (JACK) fell 11.4% and 16.6%, respectively.

Next, we’ll look at Wendy’s same-store sales growth in 4Q17.


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