The Wendy’s Co (WEN)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 194,357 | 204,440 | 177,370 | 200,392 | 117,832 |
| Revenue | US$ in thousands | 2,246,490 | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 |
| Net profit margin | 8.65% | 9.37% | 8.46% | 10.56% | 6.80% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $194,357K ÷ $2,246,490K
= 8.65%
Based on the data provided, The Wendy's Co has demonstrated a fluctuating trend in its net profit margin over the years. The net profit margin represents the percentage of revenue that translates into profit after all expenses have been deducted.
In the year ending December 31, 2020, The Wendy's Co achieved a net profit margin of 6.80%, indicating that for every dollar of revenue generated, the company retained $0.068 as profit.
In the subsequent years, the net profit margin experienced variations. It increased to 10.56% by December 31, 2021, showcasing an improvement in profitability. However, by the end of December 31, 2022, the net profit margin decreased to 8.46%.
In the following years, the net profit margin continued to fluctuate. By December 31, 2023, it improved to 9.37%, highlighting a positive trend. Yet, by the end of December 31, 2024, the net profit margin slightly decreased to 8.65%.
Overall, The Wendy's Co's net profit margin has shown variability, with some years demonstrating improved profitability and others experiencing a slight decline. It is essential for the company to continue monitoring and managing its expenses to sustain and enhance its profitability in the future.
Peer comparison
Dec 31, 2024