Wendy-s-debt-advisory.jpg The Wendy's Co.
The Wendy's Co. announces that it will evaluate raising debt through its existing facility.

Wendy’s mulls raising debt

Burger brand would use proceeds to support growth, issue dividends or repurchase shares

The Wendy’s Co. is evaluating possible debt raise transaction through its current debt facility, the company said Tuesday.

The Dublin, Ohio-based burger brand said it would use proceeds to fund growth or return capital to shareholders.

“If the transaction is completed,” Wendy’s said in a press release, “the company expects to use the net proceeds from the transaction in accordance with its capital allocation policy, including investments to support the growth of the Wendy's brand or the return of capital to shareholders through dividends and share repurchases. “

With the potential for a debt-raise transaction, Wendy’s said it was revising the dates for reporting its fourth quarter and full year 2021 results and hosting its 2022 investor day.

Wendy’s will release fourth-quarter earnings before the market opens and host an analyst call on March 1.

The brand will host a virtual investor day on June 9, the company said, and will include an update on strategies and provide a long-term outlook.

For the third quarter ended Oct. 3, Wendy’s net income rose to $41.2 million, or 18 cents a share, from $39.8 million, or 17 cents a share, in the same period last year. Revenues increased 4%, to $470.3 million, from $452.2 million in last year’s quarter.

Same-store sales in the quarter were up 2.1% in the United States and up 14.7% in international markets for a combined global increase of 3.3% over the prior-year quarter.

Wendy's, founded in 1969, has more than 6,800 restaurants worldwide.

Contact Ron Ruggless at Ronald.Ruggless@Informa.com

Follow him on Twitter: @RonRuggless

 

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