The Wendy's Company reported its financial results for the third quarter and the first nine months of 2024, highlighting a mixed performance in revenue and profitability compared to the previous fiscal period. For the three months ended September 29, 2024, total revenues reached $566.7 million, a 2.9% increase from $550.6 million in the same period of 2023. However, sales at company-operated restaurants decreased to $230.4 million from $234.7 million year-over-year. Franchise royalty revenue and fees rose to $153.9 million, up from $149.4 million, while advertising funds revenue increased significantly to $123.1 million from $108.9 million.
For the nine months ended September 29, 2024, total revenues were $1.67 billion, an increase from $1.64 billion in the same period of 2023. However, sales at company-operated restaurants declined to $673.4 million from $685.2 million. Franchise royalty revenue for the nine months also saw an increase, rising to $458.0 million from $444.0 million.
Profitability metrics showed a decline, with operating profit for the third quarter falling to $94.7 million from $101.6 million, and net income decreasing to $50.2 million from $58.0 million. For the nine-month period, net income was $146.9 million, down from $157.5 million in the prior year. The effective tax rate increased to 27.9% for the third quarter, compared to 25.5% in the previous year.
The company continues to implement its Organizational Redesign Plan, which aims to enhance efficiency and support long-term growth. Costs associated with this plan totaled $8.3 million for the nine months ended September 29, 2024, compared to $8.0 million in the same period of 2023. The company also appointed Kirk Tanner as the new President and CEO effective February 5, 2024.
Wendy's cash and cash equivalents decreased to $482.2 million as of September 29, 2024, from $516.0 million at the end of 2023. Total assets also declined to $5.07 billion from $5.18 billion. The company repurchased 3.4 million shares under its stock repurchase program, with $250.4 million remaining under the authorization.
Inflationary pressures on labor and commodity price volatility, particularly in beef and chicken, continue to impact operations. The company is managing these challenges through selective menu price increases and adjustments to product mix. Despite these pressures, Wendy's reported a global same-restaurant sales growth of 0.2% for the third quarter and 0.7% for the first nine months of 2024.
About Wendy's Co
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