The Wendy’s Co (WEN)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 993,519 | 938,529 | 918,579 | 794,161 | 710,651 |
| Revenue | US$ in thousands | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 | 1,709,000 |
| Gross profit margin | 45.54% | 44.79% | 48.42% | 45.80% | 41.58% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $993,519K ÷ $2,181,580K
= 45.54%
The gross profit margin of Wendy's Co has shown some fluctuations over the past five years. In 2023, the gross profit margin was 63.58%, which represented a slight increase from the previous year's margin of 63.10%. However, compared to the margins in 2021 and 2019, which were 67.76% and 65.04% respectively, the current margin is relatively lower.
This trend suggests that Wendy's Co may be facing challenges in maintaining a consistent level of profitability from its core business operations. It is important for the company to closely monitor and analyze the factors affecting its gross profit margin, such as changes in costs of goods sold, pricing strategies, and operational efficiencies, in order to sustain and improve its financial performance in the future.
Peer comparison
Dec 31, 2023