In a press release dated August 5th The Wendy’s Company (WEN) announced results for the second quarter ending June 28th The revenue in Q2 was lower than Street consensus of $405 million but the EPS exceeded the estimate of 10 cents.
The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as US$ x 1,000 except EPS)
|
2nd Quarter Ending
|
June 28th 2020
|
June 30th 2019
|
Difference (%)
|
|
Sales:
|
$402,306
|
$435,384
|
-7.6
|
|
Gross profit:
|
$261,680
|
$284,292
|
-8.0
|
|
Operating income:
|
$60,661
|
$80,573
|
-24.7
|
|
Pre-tax Income
Net Income
|
$31,432
$24,904
|
$45,739
$32,386
|
-1.2
-23.1
|
|
Diluted earnings per share:
|
$0.11
|
$0.14
|
-21.4
|
|
Gross Margin including franchise fees (%)
|
65.0
|
65.3
|
-0.5
|
|
Operating Margin (%)
|
15.0
|
18.5
|
-16.2
|
|
Profit Margin (%)
|
6.2
|
10.5
|
-40.9
|
|
Long-term Debt and lease obligations:
|
$3,608,790
|
$3.636,145
|
-0.8
|
|
12 Months Trailing:
|
|
|
|
|
Return on Assets (%)
|
3.2
|
|
|
|
Return on Equity (%)
|
21.9
|
|
|
|
Operating Margin (%)
|
19.2
|
|
|
|
Profit Margin (%)
|
8.7
|
|
|
|
Total Assets
|
$5,070,3561
|
$4,994,529
|
+1.5
|
|
Market Capitalization
|
$4,960,000
|
|
|
- Includes 1.98 billion in goodwill and intangibles.
52-Week Range in Share Price: $ 6.82 to $24.04 50-day 
Moving average $22.34
Market Close 5th. August pre-release $23.83 Close 6th August $22.25.
Forward P/E 39.1 Beta 1.2
Same-store sales (% increase over Q2 2019): U.S. (14.0); International (24.5);
U.S. same-store sales trend (%): April (14.0); May (1.9); June 5.1; July 8.2.
In commenting on Q2 results CEO Todd Pengor stated “I continue to be extremely proud of, and humbled by, the tireless efforts and dedication from our employees, franchisees and supplier partners across the globe as we successfully manage through COVID-19,” He added “our business and restaurant economic model continue to show incredible resilience as we build momentum with U.S. same-restaurant sales accelerating to high-single digit growth in July, driven by the continued strength of our breakfast and digital businesses. We remain focused on our goal of delivering efficient, accelerated growth behind our three major long-term growth pillars: building our breakfast day-part, growing our digital business, and expanding our International footprint. We have positioned ourselves to manage through future challenges and ultimately emerge as a stronger Wendy’s® brand."