The Wendy’s Co (WEN)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 279,418 | 243,505 | 240,578 | 152,795 | 171,481 |
| Revenue | US$ in thousands | 2,181,580 | 2,095,500 | 1,897,000 | 1,733,820 | 1,709,000 |
| Pretax margin | 12.81% | 11.62% | 12.68% | 8.81% | 10.03% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $279,418K ÷ $2,181,580K
= 12.81%
The pretax margin of Wendy's Co has shown variability over the past five years. In 2023, the pretax margin reached 12.81%, which represented an increase from the previous year's margin of 11.62%. This improvement suggests that the company was able to effectively manage its expenses relative to its revenue before accounting for taxes.
Comparing the 2023 pretax margin to historical data, we observe fluctuations in profitability. In 2022, the pretax margin was 12.68%, slightly lower than 2023 but still relatively strong. In contrast, the margins in 2021 and 2019 were 8.81% and 10.03%, respectively, indicating lower levels of profitability during those years.
Overall, while Wendy's Co has demonstrated some variability in its pretax margin over the past five years, the most recent data point suggests an improvement in profitability compared to the prior year. Monitoring this trend over time can provide insights into the company's financial health and efficiency in managing costs.
Peer comparison
Dec 31, 2023