Wendy's reports Q2 (Jun) results, revs in-line; reaffirms FY15 EPS guidance, raises margin, EBITDA guidance, lowers comp guidance; reaffirms long term guidance
- Reports Q2 (Jun) adj. earnings of $0.08 per share, including a $4.1 mln tax item, may not be comparable to the Capital IQ Consensus of $0.09; revenues fell 3.3% year/year to $489.5 mln vs the $487.74 mln consensus.
- Same-restaurant sales increased 2.4 percent at North America Company-operated restaurants in the second quarter of 2015, while same-restaurant sales increased 2.2 percent at North America franchise-operated restaurants. Systemwide same-restaurant sales increased 2.2 percent during the second quarter of 2015. Higher sales at reimaged Image Activation restaurants contributed ~170 basis points to Company-operated same-restaurant sales results, primarily from increased customer counts.
- Co reaffirms EPS guidance for FY15, sees EPS of $0.31-0.33, excluding non-recurring items, vs. $0.32 Capital IQ Consensus.
- The Company is adjusting its 2015 same-restaurant sales outlook at Company-operated restaurants to 2.0 to 2.5% from +2.5-3%.
- Company is increasing its outlook for 2015 Adjusted EBITDA from continuing operations to $385 to $390 million from its prior guidance of $375 million to $385 million. This represents an increase of 8 to 9 percent compared to the Company's 2014 Adjusted EBITDA results, which exclude the EBITDA contribution attributable to the Company's bakery operations.
- The Company is also increasing its 2015 outlook for restaurant operating margins by 50 basis points to 17.0 to 17.5 percent, an improvement of ~120 to 170 basis points compared to 15.8 percent in 2014. This estimate includes an improved outlook for commodity costs. The Company now expects its commodity costs to be ~flat compared to 2014.
- Company reaffirms long-term outlook.