The Wendy’s Company has reportedly announced its plans to further pursue its global growth through various initiatives. Prior to such, the company’s strong presence added to the overall growth along with its on-going expansions. Not only that, Wendy’s also had product and technological innovation that also affected the international presence.
Wendy’s has gained various benefits from its recent transition to becoming a franchised business model. Since 2017, the company has continued to massively expand itself compared to the number of franchisees in 2015.
Furthermore, the fast food chain company estimates a 1% growth for 2018. However, Wendy’s expects that the reduction in ownership throughout 2017 will affect the revenues. Regardless of such, the franchising system is likewise expected to lessen the general and administrative expenses of the company. This can consequently improve its earnings further.
Additionally, the higher return on equity and the boost in free cash flow may improve the return for the company’s shareholders.
Wendy’s Q1 Results
The famous restaurant chain has recently announced its first quarter results for 2018. The report indicated various upsurges such as the 11 cents increase recorded for its adjusted earnings – a 37.5% increase in a year-over-year basis. This increase rooted from the positive influence of the recent tax-based payments along with the Tax Cuts and Jobs Act of 2017.
The revenue input of the company also added to the earnings boost. Prior to the recent quarter’s report, Wendy’s posted declines for its revenues. The figures posted indicated a year-over-year growth which improved the revenues for the quarter.
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