The Wendy’s Company reported unaudited results for the third quarter ended October 2, 2022. The report shows third quarter total revenues of USD532m, while year-to-date results amount to total revenues of USD1,559bn.
According to the document, the increase in revenues resulted primarily from 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. 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. These increases were partially offset by a decrease in franchise fees as a result of decreased franchise transaction activity.
The decrease in Company-operated restaurant margin was primarily the result of higher commodity costs, customer count declines, higher labor costs, and the impact of the Company’s investments to support the entry into the United Kingdom market. These decreases were partially offset by a higher average check.
The decrease in general and administrative expense was primarily driven by a lower incentive compensation accrual. This was partially offset by higher salaries and benefits, reflecting investments in resources to support the Company’s development and digital organizations, increased travel expenses, and technology costs primarily related to the Company’s ERP implementation.