Wendy's says expects IA to be 80bp tailwind for FY17
Wendy's said on its Q2 earnings call that for 2017, it now expects commodity cost inflation of approximately 3%-4% compared to 2016 and adjusted EBITDA of approximately $404M-$410M, an increase of approximately 3%-5% compared to 2016. Wendy's also sees labor inflation of approximately 4% and free cash flow of $160M-$185M. The company also said it continues to expect to achieve its 2020 goals, including global systemwide sales of about $12B, global restaurant count of about 7,500, global image activation of at least 70%, adjusted EBITDA margin of 38%-40% and free cash flow of about $275M.Says "image activating" about 10 restaurants per week, expects to be 42% complete by the end of the year. The company said it expects IA to be 80bp tailwind for FY17. Expects kiosks to be in 300 restaurants by the end of the year, a step down from prior expectations. Wendy's also said returning cash to shareholders is a "top priority." Comments taken from the Q2 earnings conference call. Wendy's is up 2.4% in premarket trading.