The Wendy’s Co (WEN)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 272,413 | 279,418 | 243,505 | 240,578 | 152,795 |
| Revenue | US$ in thousands | 2,246,490 | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 |
| Pretax margin | 12.13% | 12.81% | 11.62% | 12.68% | 8.81% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $272,413K ÷ $2,246,490K
= 12.13%
The pretax margin of The Wendy's Co has shown a positive trend over the past five years, increasing from 8.81% in December 2020 to 12.13% in December 2024. This indicates that the company has been able to improve its efficiency in generating profits before accounting for taxes. The highest pretax margin was recorded in December 2023 at 12.81%, reflecting strong financial performance during that period. Overall, the steady growth in pretax margin suggests that The Wendy's Co has been effectively managing its expenses and maximizing profitability over the years.
Peer comparison
Dec 31, 2024
Company name
Symbol
Pretax margin
The Wendy’s Co
WEN
12.13%
Shake Shack Inc
SHAK
1.14%
Starbucks Corporation
SBUX
13.73%