The Wendy’s Company reported unaudited results for the second quarter ended July 3, 2022.
The increase in revenues was primarily driven by higher sales at Company-operated restaurants driven by the favorable impact of the acquisition of 93 franchise-operated restaurants in Florida during the fourth quarter of 2021 and higher same-restaurant sales, partially offset by the sale of 47 company-operated restaurants in the New York market during the second quarter of 2021, Wendy’s says. Revenues also benefited from an increase in franchise royalty revenue and advertising funds revenue, both of which increased largely due to higher same-restaurant sales.
The decrease in operating profit resulted primarily from lower system optimization gains driven by lapping the sale of the New York market during the second quarter of 2021 and a decrease in Company-operated restaurant margin. These decreases were partially offset by higher franchise royalty revenue.
The decrease in net income resulted primarily from a decrease in operating profit and higher interest expense as a result of the Company’s debt raise completed in the first quarter of 2022. This was partially offset by lapping a loss on early extinguishment of debt that the Company incurred as part of its debt refinancing completed in the second quarter of 2021.