Wendy's (WEN) Tops Q4 EPS by 4c, Reaffirms 2013 Guidance
Wendy's (NASDAQ: WEN) reported Q4 EPS of $0.08, $0.04 better than the analyst estimate of $0.04. Revenue for the quarter came in at $629.9 million versus the consensus estimate of $637.94 million.
Wendy's North America Company-operated restaurant same-store sales decreased 0.2 percent during the fourth quarter, compared to a 5.1 percent increase a year ago. Franchise same-store sales in North America decreased 0.6 percent during the quarter.
Company Reiterates 2013 and Long-Term Outlook
For 2013, the Company reiterated its preliminary outlook for Adjusted EBITDA of $350 million to $360 million, a 5 to 8 percent increase compared to $333.3 million in 2012.
The Company's outlook for 2013 Adjusted Earnings Per Share of $0.18 to $0.20 is a 13 to 25 percent increase compared to 2012 Adjusted Earnings Per Share of $0.16. Estimated 2013 Adjusted Earnings Per Share excludes $20 to $30 million of anticipated pretax depreciation for existing assets that will be replaced as part of the Company's Image Activation initiative. The Company expects its total 2013 depreciation and amortization to increase 15 to 20 percent compared to 2012.
(***Street sees 2013 EPS of $ 0.17 and revenue of 2.62 billion)
Also included in the 2013 outlook is:
Same-store sales growth of 2.0 to 3.0 percent at Wendy's North America Company-operated restaurants.
New restaurant development of approximately 25 new Company restaurants and 40 new franchise restaurants, plus approximately 60 new international franchise and joint-venture restaurants.
Five to 10 Company-operated restaurant closures and approximately 90 to 100 franchise restaurant closures in North America, plus approximately 15 to 20 international restaurant closures.
The reimaging of 100 Company-operated restaurants and 100 franchised restaurants. The outlook includes the cost of a $10 million incentive program for franchisees to reimage their restaurants in 2013.
Wendy's Company-operated restaurant margin of 14.2 to 14.5 percent, compared to 14.0 percent in 2012. This estimate assumes the benefit of same-store sales increases, Image Activation sales, discontinuation of breakfast at certain restaurants and cost-savings initiatives. It also assumes a 90 to 120 basis-point impact from higher commodity costs, driven primarily by rising beef and chicken costs.
Capital expenditures of approximately $245 million, compared to approximately $200 million in 2012. This estimate includes $145 million for Image Activation designs at 25 new and 100 reimaged Company-operated restaurants in North America.
Based upon progress with its "Recipe to Win" strategy, including the success of the Image Activation program, the Company continues to target long-term Adjusted EBITDA and Adjusted Earnings Per Share growth beyond 2013 in the high single-digit to low double-digit range
For earnings history and earnings-related data on Wendy's (WEN) click here.
Wendy's North America Company-operated restaurant same-store sales decreased 0.2 percent during the fourth quarter, compared to a 5.1 percent increase a year ago. Franchise same-store sales in North America decreased 0.6 percent during the quarter.
Company Reiterates 2013 and Long-Term Outlook
For 2013, the Company reiterated its preliminary outlook for Adjusted EBITDA of $350 million to $360 million, a 5 to 8 percent increase compared to $333.3 million in 2012.
The Company's outlook for 2013 Adjusted Earnings Per Share of $0.18 to $0.20 is a 13 to 25 percent increase compared to 2012 Adjusted Earnings Per Share of $0.16. Estimated 2013 Adjusted Earnings Per Share excludes $20 to $30 million of anticipated pretax depreciation for existing assets that will be replaced as part of the Company's Image Activation initiative. The Company expects its total 2013 depreciation and amortization to increase 15 to 20 percent compared to 2012.
(***Street sees 2013 EPS of $ 0.17 and revenue of 2.62 billion)
Also included in the 2013 outlook is:
Same-store sales growth of 2.0 to 3.0 percent at Wendy's North America Company-operated restaurants.
New restaurant development of approximately 25 new Company restaurants and 40 new franchise restaurants, plus approximately 60 new international franchise and joint-venture restaurants.
Five to 10 Company-operated restaurant closures and approximately 90 to 100 franchise restaurant closures in North America, plus approximately 15 to 20 international restaurant closures.
The reimaging of 100 Company-operated restaurants and 100 franchised restaurants. The outlook includes the cost of a $10 million incentive program for franchisees to reimage their restaurants in 2013.
Wendy's Company-operated restaurant margin of 14.2 to 14.5 percent, compared to 14.0 percent in 2012. This estimate assumes the benefit of same-store sales increases, Image Activation sales, discontinuation of breakfast at certain restaurants and cost-savings initiatives. It also assumes a 90 to 120 basis-point impact from higher commodity costs, driven primarily by rising beef and chicken costs.
Capital expenditures of approximately $245 million, compared to approximately $200 million in 2012. This estimate includes $145 million for Image Activation designs at 25 new and 100 reimaged Company-operated restaurants in North America.
Based upon progress with its "Recipe to Win" strategy, including the success of the Image Activation program, the Company continues to target long-term Adjusted EBITDA and Adjusted Earnings Per Share growth beyond 2013 in the high single-digit to low double-digit range
For earnings history and earnings-related data on Wendy's (WEN) click here.