On January 13, 2023, The Wendy's Company (WEN) announced that it will double its quarterly dividend to $0.25 per share. The company announced today a 100% increase in its regular quarterly cash dividend to 25 cents per share. This increase will be effective beginning with the Company's first quarter dividend, payable on March 15, 2023, to stockholders of record as of March 1, 2023. The Company believes that its strong liquidity position, business momentum, and expected free cash flow growth support this increase, while providing flexibility to continue to invest in growth. The number of common shares outstanding as of January 6, 2023 was approximately 213 million.
A new annual rate of $1.00 per share yields approximately 4.3% at a stock price of $23 for Wendy's. The ex-dividend date for the next WEN dividend is February 28, 2023. This new quarterly dividend just declared is the highest ever by Wendy's.
"Our 2022 results highlight the strength and resiliency of the Wendy's® brand as we continued to deliver compelling sales and profit growth," President and Chief Executive Officer Todd Penegor said. "During the year, global same-restaurant sales reached double digits on a two-year basis for the second consecutive year, Company restaurant margins expanded by almost 300 basis points in the fourth quarter versus the first quarter, and we opened over 275 restaurants across the globe. Supported by our business momentum and strong liquidity position, I am pleased to announce that our Board of Directors has approved a 100% increase in our quarterly dividend to $0.25 per share and a new $500 million share repurchase authorization. These actions are in alignment with our capital allocation policy while providing significant flexibility to continue to invest in growth."
The Wendy's Company is quick-service hamburger company. Wendy's is best known for its made-to-order square hamburgers, using fresh, never frozen beef, freshly-prepared salads with hand-chopped lettuce, and other signature items like chili, baked potatoes and the Frosty dessert. The Wendy's system includes franchise and company-operated restaurants in the United States and worldwide. Wendy's is also a partner in a Canadian restaurant real estate joint venture with a subsidiary of Restaurant Brands International Inc. (Tim Hortons and Burger King). Wendy's was founded in 1969 by Dave Thomas in Columbus, Ohio.