Wendy’s misses U.S. same-store sales estimates on stiff competition
2022.05.11 14:56
FILE PHOTO: A Wendy’s Co restaurant is pictured in Monrovia, California November 4, 2015. REUTERS/Mario Anzuoni
(Reuters) – Wendy’s (NASDAQ:WEN) Co missed Wall Street estimates for quarterly U.S. same-store sales growth on Wednesday, as the hamburger chain grappled with increased competition amid supply and labor constraints that have hit the restaurant industry.
Restaurants across the United States have been struggling to staff their outlets adequately amid a tight labor market, which led to a decline in Domino’s Pizza (NYSE:DPZ) Inc and Yum Brands’ Pizza Hut quarterly sales.
Wendy’s has also been facing rising competition from rival fast-food chains including McDonald’s (NYSE:MCD) and Yum Brands, who have doubled down on marketing and launched new menu items to attract more customers.
For Wendy’s, U.S. same-store sales rose 1.1% in the first quarter ended April 3, compared with analysts’ average estimate for a 2.28% increase, according to Refinitiv IBES.
Total revenue rose to $488.6 million from $460.2 million a year earlier, also missing estimates of $496.9 million.
Net income fell to $37.4 million, or 17 cents per share, from $41.4 million, or 18 cents per share.
