Wendy's (WEN) FY2022 results: revenue $2.1 billion, up 10.5% on the year

Wendy's Co. (WEN) reported revenue of $2.1 billion for fiscal 2022, the year ended 1 January 2023, up 10.5% on the year before. Net income was $177 million, down 11.5%, and diluted earnings per share $0.82. The figures are the company's own, from the 10-K it filed with the SEC on 1 March 2023.

Revenue

$2.1 billion

+10.5% on the year

FY2015FY2022

Operating margin

16.9%

19.3% a year earlier

FY2015FY2022

Net income

$177 million

-11.5% on the year

FY2015FY2022

Diluted EPS

$0.82

-7.9% on the year

FY2015FY2022

this yearthe year beforeHover a bar for its figure.

The year in brief

The four quarters: Q1 FY2022 · Q2 FY2022 · Q3 FY2022 · Q4 FY2022

Income statement (profit and loss)

$ million	FY2022	FY2021	FY2020	On the year
Revenue	2,096	1,897	1,734	+10.5%
Cost of revenue	773	612	615	+26.4%
Gross profit	1,322	1,285	1,119	+2.9%
Gross margin	63.1%	67.8%	64.5%
Operating income	353	367	269	-3.7%
Operating margin	16.9%	19.3%	15.5%
Interest expense	122	109	118	+12.0%
Pre-tax income	244	241	153	+1.2%
Income tax	66.1	40.2	35.0	+64.6%
Effective tax rate	27.2%	16.7%	22.9%
Net income	177	200	118	-11.5%
Net margin	8.5%	10.6%	6.8%
Diluted EPS	$0.82	$0.89	$0.52	-7.9%

$ million except per share.

Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	FY2022	FY2021	FY2020	On the year
Operating cash flow	260	346	284	-24.8%
Capital expenditure	85.5	78.0	69.0	+9.7%
Free cash flow	174	268	215	-34.9%
Free cash flow margin	8.3%	14.1%	12.4%
Cash from investing	-77.8	-155	-68.2
Cash from financing	289	-243	-158
Depreciation and amortisation	133	126	133	+6.3%
Share-based compensation	24.5	22.0	18.9	+11.4%
Buybacks	52.0	269	62.2	-80.7%
Dividends paid	107	94.8	64.9	+12.6%
Dividend per share	$0.50	$0.43	$0.29	+16.3%
Diluted shares, weighted	216m	224m	228m	-3.8%
Shares outstanding at period end	213m	216m	224m	-1.3%

Balance sheet

$ million	FY2022	FY2021	FY2020	On the year
Shareholders' equity	466	436	550	+6.7%
Debt	2,851	2,381	2,247	+19.8%
Operating lease liabilities	792	853	865	-7.2%
Finance lease liabilities	572	560	506	+2.2%
Other liabilities	818	871	872	-6.1%
Total liabilities and equity	5,499	5,101	5,040	+7.8%
Fixed assets	896	907	916	-1.2%
Goodwill	773	775	751	-0.3%
Intangible assets	1,249	1,281	1,225	-2.5%
Investments	46.0	49.9	44.6	-7.7%
Cash and equivalents	746	249	307	+199.0%
Receivables	98.6	102	93.7	-2.9%
Inventory	7.1	5.9	4.7	+20.1%
Other assets	1,684	1,732	1,698	-2.8%
Total assets	5,499	5,101	5,040	+7.8%

10-K for the year ended 1 January 2023, filed 1 March 2023: the filing.