Wendy's Co. shares (NAS:WEN) slid 2.3% in premarket trade Wednesday, after the fast-food company posted weaker-than-expected revenue for the second quarter. Wendy's had net income of $48.2 million, or 22 cents a share, for the quarter, down from $65.7 million, or 29 cents a share, in the year-earlier period. Adjusted per-share earnings came to 24 cents, ahead of the 22 cent FactSet consensus. Revenue rose to $537.8 million from $493.3 million, just below the $540.0 million FactSet consensus. Systemwide same-restaurant sales rose 5.6%, compared with a FactSet consensus for a rise of 2.8%. Revenue was boosted by the impact of the acquisition of 93 franchise-operated restaurants in Florida in the fourth quarter of 2021, partially offset by the sale of 47 company-operated restaurants in the New York market in the second quarter of 2021. Margins shrunk as higher commodity and labor costs, customer count declines and investments to support the entry into the UK market weighed. The company is now expecting full-year adjusted EPS of 84 cents to 88 cents, ahead of the 83 cent FactSet consensus. Shares have fallen 11% in the year to date, while the S&P 500 (S&P:SPX) has fallen 13.5%.
Aug. 10, 2022, 7:15 a.m. EDT