Wendy's Company reported a revenue increase of 3.0% for the fiscal year ending December 29, 2024, reaching $2.25 billion compared to $2.18 billion in the previous year. However, net income decreased by 4.9% to $194.4 million from $204.4 million in 2023. The decline in profitability was attributed to various factors, including increased costs associated with labor and advertising, as well as a decrease in customer counts at Company-operated restaurants. Global same-restaurant sales rose by 1.5%, with U.S. same-restaurant sales increasing by 1.4% and international sales up by 2.8%.
In terms of operational changes, Wendy's opened 276 new restaurants in 2024, while closing an equal number, resulting in a stable total of 7,240 restaurants worldwide. The U.S. segment accounted for 5,933 locations, with 381 Company-operated and 5,552 franchised restaurants. The company continues to focus on its strategic initiative to optimize its restaurant system, which includes facilitating franchise flips and evaluating strategic acquisitions and dispositions of restaurants. As of the end of 2024, approximately 95% of Wendy's restaurants were operated by franchisees.
Wendy's has also made significant investments in digital growth, with digital sales increasing from 13.2% of global systemwide sales in 2023 to approximately 17.6% in 2024. The company is enhancing its mobile app and loyalty programs while establishing delivery arrangements with third-party vendors. Additionally, Wendy's is focused on improving restaurant profitability and expanding its footprint globally, with plans to invest approximately $100 million to $110 million in capital expenditures in 2025, primarily for technology and new restaurant openings.
Looking ahead, Wendy's expects to benefit from innovation in its core menu items and new offerings in fast-growing categories. The company anticipates that franchise royalty revenue and fees will increase due to new restaurant development and improved sales at existing locations. However, it also acknowledges potential challenges, including rising labor costs and competitive pressures that may impact its ability to recover increased commodity costs through menu price adjustments. Overall, Wendy's remains committed to executing its long-term growth strategy while navigating the complexities of the quick-service restaurant industry.
About Wendy's Co
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