The Wendy’s Co (WEN)
Operating profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 381,984 | 379,372 | 375,904 | 362,911 | 353,314 | 346,194 | 328,254 | 358,719 | 366,960 | 368,630 | 369,783 | 303,698 | 269,308 | 227,458 | 225,133 | 245,045 | 262,579 | 271,661 | 269,986 | 260,896 |
| Revenue (ttm) | US$ in thousands | 2,181,578 | 2,177,437 | 2,159,451 | 2,135,669 | 2,095,505 | 2,032,198 | 1,969,884 | 1,925,438 | 1,896,998 | 1,898,112 | 1,880,099 | 1,789,068 | 1,733,825 | 1,686,699 | 1,672,337 | 1,705,379 | 1,709,002 | 1,679,631 | 1,642,301 | 1,617,955 |
| Operating profit margin | 17.51% | 17.42% | 17.41% | 16.99% | 16.86% | 17.04% | 16.66% | 18.63% | 19.34% | 19.42% | 19.67% | 16.98% | 15.53% | 13.49% | 13.46% | 14.37% | 15.36% | 16.17% | 16.44% | 16.13% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $381,984K ÷ $2,181,578K
= 17.51%
The operating profit margin of Wendy's Co has shown a fairly stable trend over the past eight quarters, fluctuating within a relatively narrow range. In the most recent quarter, Q4 2023, the operating profit margin was 17.32%, which was slightly lower than in the prior quarter, Q3 2023, at 17.56%. Despite this decrease, the operating profit margins have remained above 15% consistently, indicating efficient cost management and strong operational performance.
It is noteworthy that the operating profit margin reached its peak in Q3 2023 at 17.56%, which may suggest that the company was able to effectively control costs and improve profitability during that period. However, there was a slight decline in the subsequent quarter, Q4 2023, to 17.32%.
Overall, the operating profit margin of Wendy's Co has demonstrated a positive trend, reflecting the company's ability to generate profits from its core operations. Investors and stakeholders may view the consistent performance of the operating profit margin as a sign of stability and potential financial health within the company.
Peer comparison
Dec 31, 2023