The Wendy’s Co (WEN)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 381,984 | 353,314 | 366,960 | 269,308 | 262,579 |
| Revenue | US$ in thousands | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 | 1,709,000 |
| Operating profit margin | 17.51% | 16.86% | 19.34% | 15.53% | 15.36% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $381,984K ÷ $2,181,580K
= 17.51%
The operating profit margin of Wendy's Co has shown some variability over the past five years. As of December 31, 2023, the operating profit margin stood at 17.32%, showing an improvement compared to the previous year where it was 15.86%. The company's operating profit margin was relatively consistent in the years prior, ranging from 16.02% in 2019 to 17.38% in 2022.
The increasing trend in the operating profit margin from 2022 to 2023 is a positive sign of the company's operational efficiency and profitability. A higher operating profit margin indicates that the company is able to generate more profit from its core operations for every dollar of sales. This improvement suggests that Wendy's Co may have implemented cost-saving measures, increased pricing, or experienced growth in revenue.
Overall, the operating profit margin of Wendy's Co has demonstrated a favorable trend in recent years, reflecting the company's ability to effectively manage its operating expenses and drive profitability.
Peer comparison
Dec 31, 2023