Dublin / OH. (twc) The Wendy’s Company held its Investor Day earlier today, during which the Company provided an overview of its long-term strategic vision, including additional details regarding its plans to launch breakfast across the U.S. system in 2020, as well as an update on its U.S. business operations, digital experience initiatives and its international business strategy. As part of this presentation, the Company made the following announcements.
Preliminary Third Quarter Global Systemwide Sales, North America Same-Restaurant Sales and Global Restaurant Growth Results
The Company announced its preliminary Global systemwide sales, North America same-restaurant sales and global new restaurant development for the third quarter ended September 29, 2019.
Global systemwide sales grew 5.7 percent in the quarter and 4.1 percent year-to date. For the 2019 fiscal year, the Company now expects to be at the high end of its previously announced systemwide sales guidance range of 3.0 to 4.0 percent.
North America same-restaurant sales grew 4.4 percent in the quarter and 2.4 percent year-to date.
Global restaurants grew 40 on a gross basis and 24 on a net basis in the quarter and 111 on a gross basis and 32 on a net basis year-to-date.
The Company plans to report its full financial results for the third quarter ended September 29, 2019 on Wednesday, November 06.
Board Authorizes a 20 Percent Dividend Rate Increase
The Company’s Board of Directors has authorized a 20 percent increase in the Company’s quarterly cash dividend rate from 10 cents to 12 cents per share. The increase will be effective with the next quarterly dividend payment, which is payable on December 16, 2019, to shareholders of record as of December 02, 2019.
The approximate number of common shares outstanding as of October 07, 2019 was 230.3 million.
New Long-Term Outlook
The Company announced updated 2020 goals and a new long-term outlook.
2020 Goals
- Global systemwide sales of approximately USD 12.0 to USD 12.5 billion
- Adjusted Ebitda of approximately USD 425 to USD 435 million
- Free cash flow of approximately USD 235 to USD 245 million, excluding the approximately USD 20 million tax-effected impact from the proposed settlement of the Financial Institutions case. Including the impact of the proposed settlement, the Company expects free cash flow of approximately USD 215 to USD 225 million.
Long-Term Outlook 2021-2024
- Annual global systemwide sales growth of approximately 4-5 percent
- High single-digit adjusted Ebitda growth
- Free cash flow growth in-line with adjusted Ebitda growth
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