Wendy's (WEN) Misses Q2 EPS by 2c, Revenues Beat; Offers 2018 Outlook

Wendy's (NASDAQ: WEN) reported Q2 EPS of $0.14, $0.02 worse than the analyst estimate of $0.16. Revenue for the quarter came in at $411 million versus the consensus estimate of $407.69 million.

GUIDANCE:

• North America same-restaurant sales growth of approximately 2.0 to 2.5 percent.
• Commodity inflation of approximately 1 to 2 percent.
• Labor inflation of approximately 3 to 4 percent.
• Company-operated restaurant margin of approximately 17 to 18 percent.
• General and administrative expense of approximately $195 million.
• Adjusted EBITDA of approximately $420 to $430 million, an increase of approximately 8 to 10 percent compared to recast 2017 results.
• Adjusted EBITDA margin of approximately 33 to 34 percent.
• Interest expense of approximately $120 million.
• Depreciation and amortization expense of approximately $130 million.
• Adjusted tax rate of approximately 21 to 23 percent.
• Adjusted earnings per share of approximately $0.55 to $0.57, an increase of approximately 41 to 46 percent compared to recast 2017 results.
• Cash flows from operations of approximately $295 to $320 million.
• Capital expenditures of approximately $75 to $80 million.
• Free cash flow of approximately $220 to $240 million, an increase of approximately 29 to 41 percent compared to 2017.

For earnings history and earnings-related data on Wendy's (WEN) click here.

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