The Wendy’s Company reported net sales of USD493m for the second quarter of 2021, an increase of 22.6% when compared to 2020 same-quarter results. Year-to-date, the net sales have now reached USD953m. The increase in revenues was primarily driven by higher sales at company-operated restaurants, an increase in franchise royalty revenue, and an increase in advertising funds. These increases were primarily driven by positive same-restaurant sales. Revenues also increased due to higher franchise fees primarily as the result of the Company’s new technology fee that was implemented in 2021.
The increase in adjusted revenues was primarily driven by higher sales at company-operated restaurants and an increase in franchise royalty revenue. These increases were primarily driven by positive same-restaurant sales. Revenues also increased due to higher franchise fees primarily as the result of the company’s new technology fee that was implemented in 2021. The increase in company-operated restaurant margin was primarily the result of increased customer counts, a higher average check, and lapping recognition pay where the Wendy’s increased pay for all restaurant level employees by 10% for April and May in the prior year. The increase was partially offset by labor rate increases and higher commodity costs.
The increase in operating profit resulted primarily from higher franchise royalty revenue and fees, system optimization gains primarily related to the sale of the New York market, and an increase in company-operated restaurant margin. These increases were partially offset by higher general and administrative expense.