Wendy's +3% After Q1 Results On Solid Growth In US Breakfast Sales Despite Labor Cost Issues
Portfolio Pulse from Nabaparna Bhattacharya
Wendy's Company (NASDAQ:WEN) shares rose by 3% after reporting Q1 results, with adjusted earnings per share of 23 cents, surpassing the expected 21 cents. However, quarterly sales of $534.753 million fell short of the anticipated $540.972 million. The growth was attributed to increased advertising funds revenue and franchise royalty revenue, driven by new restaurant development and higher same-restaurant sales. U.S. breakfast sales saw high-single digit growth year-over-year, and digital sales comprised nearly 17% of global sales. The company also announced a quarterly cash dividend of 25 cents per share and maintains its global systemwide sales growth forecast of 5% to 6% for the fiscal year.
May 02, 2024 | 3:22 pm
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Wendy's reported higher than expected Q1 earnings per share at 23 cents, with a slight miss in sales. The company announced a quarterly dividend of 25 cents per share and expects continued sales growth.
The positive earnings report and the announcement of a regular quarterly dividend are likely to instill confidence in investors, potentially leading to a short-term uptick in WEN's stock price. The slight miss in sales forecasts may temper some of the enthusiasm, but the overall positive outlook and continued growth in key areas like U.S. breakfast sales and digital sales mix should support the stock's upward trajectory in the short term.
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RELEVANCE 100