In a release dated August 10th, the Wendy’s Company (WEN) reported results for the second quarter 0f FY 2022 ending July 3rd 2022.

For the period, the company earned $48.2 million on total revenue of $537.7 million including Company-operated stores and franchise fees.  Comparable figures for the second quarter of FY  2021 were net income of $65.7 million on total revenue of $493.3 million. Diluted EPS declined from $0.29 in 2021 to $0.22 for the most recently completed quarter.  Results for the second quarter of 2021 included a gain of $30.8 million described as “System Optimization” Operating margin declined from 25.6 percent in 2021 to 17.9 percent for the second quarter of 2022.

In commenting on results, Todd Penegor, president and CEO stated, “We are proud of the entire Wendy’s team for delivering a third consecutive quarter of accelerated double-digit Global same-store sales growth that exceeded our expectations,” Penegor added “This momentum contributed to a significant sequential Company-operated restaurant margin expansion, highlighting the strength of the underlying business and our brand as well as our commitment to the restaurant economic model in a challenging environment” He concluded. “Our business continued to outperform the competition and our franchisees are operating from a position of strength after achieving record profits across the US and Canada in 2021.

For the second quarter of 2022, Wendy’s posted system wide sales growth for the U.S. of 3.5 percent compared to sales growth for the international segment of 22.7 with global sales growth of 5.6 percent.  U.S. same-restaurant sales growth was 2.3 percent compared to 20.6 percent for the second quarter of 2021 that reflected a post-COVID rebound.

Guidance for 2022 included sales growth of 6 to 8 percent with an upward adjusted EPS of $0.84 to $0.88. Free cash flow was forecast to attain a range of $215 to $225 million

Wendy’s Company had a market capitalization of $4,560 million on August 11th.  Total assets on July 3rd amounted to $5,516 million of which 36.9 percent comprised goodwill and intangibles.  Long-term debt and lease obligation were $4,224 million.  WEN has traded in a 52-week range of $15.77 to $24.48 with a 50-day moving average of $19.54.  WEN trades with a forward P/E ratio of 24.9.  WEN fell 1.8 percent on Wednesday August 10th after the release to close at $20.76 due to a revenue miss against the anticipated value of $541 million.