Wendy’s (NASDAQ:WEN) is a quick service restaurant based in Dublin, Ohio. Shares of Wendy’s have dropped 18% in the year-to-date period as of close on Tuesday, July 9, 2024. Meanwhile, the stock has dropped 25% compared to the previous year.
On Tuesday, July 9, Wendy’s announced the signing of two development agreements with franchisees in the Republic of Ireland and Romania. Wendy’s has unveiled plans to develop hundreds of restaurant locations across Europe over the next decade. That plan will kick off in 2025. Wendy’s has moved to recruit “well-established franchisee candidates in European markets” to expand its footprint across the continent.
The company released its first quarter (Q1) fiscal 2024 earnings on May 2, 2024. In that report, Wendy’s reported global system-wide sales growth of 2.6% compared to 10% growth in the previous year. Meanwhile, systemwide sales were reported at $3.44 billion – up from $3.36 billion in Q1 FY2023. Wendy’s finished the quarter with a total global restaurant count of 7,248, which was up from the 7,095 locations it reported in the first quarter of the prior year.
In Q1 2024, Wendy’s posted total revenues of $528 million – up just 1.1% from the previous year. Meanwhile, net income jumped 5.5% to $42.0 million. EBITDA stands for earnings before interest, taxes, depreciation, and amortization, aiming to give a clearer picture of a company’s profitability. It posted adjusted EBITDA of $127 million, which was up 1.8% compared to Q1 2023.
Shares of Wendy’s currently possess a favourable price-to-earnings ratio of 16 at the time of this writing. Moreover, it last paid out a quarterly dividend of $0.25 per share. That represents a 6.3% yield.
