The Wendy's Company announced yesterday that it plans to launch its breakfast menu, currently available in more than 300 restaurants, across the U.S. system in 2020. The menu features signature items that takes the best of Wendy's, from Applewood smoked bacon to the Frosty®, and creatively delivers them to fans for breakfast. Signature items include the Breakfast Baconator®, Frosty-ccino, and Honey Butter Chicken Biscuit.
"Launching breakfast in our U.S. restaurants nationwide provides incredible growth opportunities," said Todd Penegor, President and CEO of The Wendy's Company. "We are well-positioned to pursue it. We believe we have the right team and structure in place, and we put Wendy's fan favorites on our breakfast menu to set us apart from the competition."
Wendy's is Fast Food Done Right: your go-to for real, fresh, craveable food that doesn't cost a fortune and the new breakfast menu attests to that. To support its expansion into breakfast, the Company and its franchisees plan to hire approximately 20,000 crew members across the country. Individuals interested in providing high-quality experiences that match the high-quality Wendy's food, should visit careers.wendys.com or a local Wendy's.
Company Updates 2019 Outlook and Will Provide Updated Long-Term Guidance at Investor Day
As a result of its intention to enter the breakfast daypart across the U.S. system in 2020, the Company is updating its 2019 outlook as it expects to make one-time upfront investments during 2019 of approximately $20 million to support the U.S. system in preparation of its national launch. All other elements of the Company's 2019 outlook remain unchanged. In addition, the Company is removing its 2020 goals as it intends to update these goals and provide additional long-term guidance at its Investor Day on October 11, 2019, including additional details regarding the expected financial impact of entering the breakfast daypart.
During 2019, as a Result of the ~$20 Million Breakfast Investments, the Company Now Expects:
- Adjusted EBITDA approximately flat to down 2.0 percent.
- Adjusted earnings per share down approximately 3.5 to 6.5 percent.
- Cash flows from operations of approximately $290 to $305 million.
- Free cash flow of approximately $215 to $225 million, down approximately 2.5 to 7.0 percent.
During 2019, the Company Continues to Expect:
- Global systemwide sales growth of approximately 3.0 to 4.0 percent.
- General and administrative expense of approximately $195 million.
- Adjusted tax rate of approximately 22 to 23 percent.
- Capital expenditures of approximately $75 to $80 million.
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