Wendy’s registers nearly 10% decline in Q1 profit

Total revenues increased by 6.2% to $488.6m and adjusted EBITDA fell by 11.6% to $106.9m.


Verdict Food Service

May 12, 2022


American fast-food chain Wendy’s has posted a net income of $37.4m for the first quarter of 2022, down 9.6% from $41.4m a year ago.


On a per-share basis, the company’s profit was 17 cents.


For the quarter ended 3 April, the company’s revenues were $488.6m, an increase of 6.2% compared with $460m last year.


The hamburger chain attributed the rise in revenues to the higher sales at company-operated restaurants, driven by the acquisition of 93 franchise-operated restaurants in Florida, US, during the fourth quarter of 2021.


Wendy’s system-wide sales in the US during the quarter rose to $2.7bn, from $2.6bn in the year-ago period. Systemwide sales include sales at both company-operated and franchise restaurants.


The company’s system-wide sales in the international market were $360m, compared to $304m a year earlier.


During the quarter, the company’s operating profit also decreased from $83.1m in the first quarter of 2021, to $74.9m in this year’s first quarter.


Adjusted EBITDA fell by 11.6% to $106.9m, from $121m in the first quarter of 2021.


Commenting on the results, Wendy’s president and CEO Todd Penegor said: