Wendy’s Stock Falls After Sales Decline
2022.08.10 17:30
Wendy’s (WEN) Stock Falls After Sales Decline
By Sam Boughedda
Wendy’s (NASDAQ:WEN) shares fell over 3% in early Wednesday trading after the company reported earnings before the opening bell, topping earnings estimates but missing revenue expectations.
The fast food chain reported second quarter earnings of $0.24 per share, $0.02 above the consensus estimate of $0.22. However, revenue for the quarter came in at $537.8 million, below the consensus estimate of $539.22 million.
Wendy’s U.S. same-store sales increased 2.3% in the quarter, also missing analyst estimates of a 2.8% rise as inflation hits consumer wallets.
“Our business continued to outperform the competition and our franchisees are operating from a position of strength after achieving record profits across the US and Canada in 2021,” said Wendy’s President and Chief Executive Officer Todd Penegor.
Wendy’s sees full-year 2022 earnings per share between $0.84 and $0.88, versus the consensus of $0.83, with global systemwide sales growth between 6% and 8%.
Reacting to the report, a Goldman Sachs analyst in a note to clients, stated: “We expect WEN to underperform today on the lower US SSS trends, margin miss, and lower than expected global unit growth.”
