The Wendy’s Co (WEN)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 279,418 | 270,281 | 261,446 | 247,952 | 243,505 | 236,314 | 221,551 | 236,947 | 240,578 | 237,254 | 235,331 | 185,977 | 152,795 | 137,705 | 138,573 | 152,880 | 171,481 | 158,316 | 603,922 | 600,447 |
| 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 |
| Pretax margin | 12.81% | 12.41% | 12.11% | 11.61% | 11.62% | 11.63% | 11.25% | 12.31% | 12.68% | 12.50% | 12.52% | 10.40% | 8.81% | 8.16% | 8.29% | 8.96% | 10.03% | 9.43% | 36.77% | 37.11% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $279,418K ÷ $2,181,578K
= 12.81%
Wendy's Co has shown a consistent pretax margin performance over the past 8 quarters, ranging from 11.25% to 12.81%. The pretax margin measures the company's efficiency in generating profits before taxes relative to its total revenue. It appears that Wendy's has been able to maintain relatively stable profitability levels during this period. The slight fluctuations observed may be due to factors such as changes in costs, sales volumes, or pricing strategies. Overall, a pretax margin above 10% indicates that Wendy's has been effectively managing its expenses and generating healthy profits. Investors and stakeholders may view this as a positive sign of the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023