Wendy’s Co. Again Boosts FY21 Outlook; Raises Qtly Dividend 20% – Quick Facts

Wendy’s Co. Again Boosts FY21 Outlook; Raises Qtly Dividend 20% – Quick Facts

August 11, 2021

While reporting financial results for the first quarter on Wednesday, The Wendy’s Co. (WEN) again raised its adjusted earnings and global systemwide sales growth guidance for the full-year 2021. The company also raised its quarterly dividend 20% and increased share repurchase authorization.

For fiscal 2021, the company now projects adjusted earnings in a range of $0.79 to $0.81 per share on global systemwide sales growth of 11 to 13 percent, excluding the impact of the 53rd week.

Previously, the company expected adjusted earnings in the range of $0.72 to $0.74 per share on global systemwide sales growth of 8 to 10 percent, excluding the impact of the 53rd week.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $0.74 per share on revenue growth of 6.7 percent to $1.85 billion for the year. Analysts’ estimates typically exclude special items.

The company also announced a 20 percent increase in its regular quarterly cash dividend to 12 cents per share, payable on September 15, 2021, to stockholders of record as of September 1, 2021.

Further, the company announced that its Board of Directors has approved an increase to the Company’s existing share repurchase authorization by $70 million to a total of $220 million.

“We are thrilled to once again increase our 2021 financial outlook across all key financial metrics, driven by a transformative quarter that showcased our continued momentum and the overall strength of our business,” said Todd Penegor, President and CEO.

The company also meaningfully increased its 2025 Global restaurant target to a range of 8,500 to 9,000, driven by a development commitment with REEF Kitchens, a new build to suit development fund, and incremental commitments through its latest new restaurant incentive program.

For the second quarter, the company reported that net income increased to $65.7 million or $0.29 per share from $24.9 million or $0.11 per share in the prior-year quarter. Excluding items, adjusted earnings per share were $0.27 per share, compared to $0.12 per share last year. Total revenues for the quarter also grew 22.6 percent to $493.3 million from $402.3 million in the same quarter last year.

The Street is looking for earnings of $0.12 per share on revenues of $461.63 million for the quarter.

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