By Shares of Wendy’s Co. slipped 0.2% in premarket trading on Wednesday, following the release of their second-quarter earnings report. While the fast-food burger chain surpassed profit expectations, their revenue fell short. However, Wendy’s maintained a positive outlook for the rest of the year.
Financial Performance
- Net income for the second quarter increased to $59.6 million, or 28 cents per share, compared to $48.2 million, or 22 cents per share, in the same period last year.
- Adjusted earnings per share rose from 24 cents to 28 cents, surpassing the FactSet consensus of 27 cents.
- Revenue experienced a growth of 4.4% to $561.6 million, slightly below the FactSet consensus of $566.2 million.
Same-Store Sales Growth
- Wendy’s reported an overall same-store sales growth of 5.1%, falling short of the expected 5.3% rise according to FactSet.
- Domestic growth was 4.9%, below expectations of a 5.8% increase.
- International growth exceeded expectations with a growth rate of 7.2%, compared to the projected 6.6% increase.
Full-Year Outlook
- Wendy’s reiterated its guidance for adjusted earnings per share in 2023, anticipating a range of 95 cents to $1.
- The company also expects sales growth between 6% and 8%.
Despite the mixed results, Wendy’s stock has seen a decline of 5.4% in the past three months, while the S&P 500 has gained 9.2%.
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