Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Wendy's sales disappoint as U.S. winter hits store traffic

Stock Markets May 11, 2022 11:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A Wendy's Co restaurant is pictured in Monrovia, California November 4, 2015. REUTERS/Mario Anzuoni
 
MCD
+0.39%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
WEN
-0.40%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

(Reuters) -Wendy's Co missed Wall Street estimates for quarterly results as fierce storms and freezing temperatures across the United States earlier this year hit store traffic and cooled demand for the burger chain's breakfast items.

Shares of the Dublin, Ohio-based fast-food chain fell as much as 13% to hit an over two-year low on Wednesday, after the company said it now expects breakfast sales for the full year to linger toward the lower end of the 10% to 20% growth range it had projected earlier.

Analysts have said Wendy's (NASDAQ:WEN) breakfast menu - known for items including the Baconator burger and Frosty-ccino coffees - could face pressure from consumers turning to cheaper meals as rising inflation hit Americans' pockets.

"I view the first quarter results really as a little bump," said Wendy's Chief Financial Officer Gunther Plosch.

Wendy's company-operated restaurant margin fell to 11.6% in the quarter ended April 3 from 17% a year earlier due to higher costs of labor and commodities such as beef, chicken, coffee and edible oils.

The company said there has been a slowdown in traffic from its lower-income consumers, but some of its more affluent customers were continuing to order its hamburgers and fries.

Larger rival McDonald's (NYSE:MCD) also said last month some of its customers were buying cheaper or fewer items.

Wendy's U.S. same-store sales rose 1.1% in the first quarter, but missed analysts' average estimate for a 2.28% increase, according to Refinitiv IBES.

It said traffic at its outlets was also pressured in the quarter due to the Omicron variant of the coronavirus.

Total revenue rose 6.2% to $488.6 million, also below estimates of $496.9 million.

Adjusted profit of 17 cents per share fell short of expectations by 1 cent.

Wendy's sales disappoint as U.S. winter hits store traffic
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
joe balone
joe balone May 11, 2022 9:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The one down the street from me dies really poor sales due to lackluster management and employees . Two cars in the drive thru and you wait 10 minutes for overpriced food. meanwhile Chic Filet is moving 25 cars in 8 minutes down the street and the food is hot and fresh.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email