Wendy's Records 13.5% Increase In US Same-Store Sales
Fast food restaurant chain Wendy's has recorded a 13.5% increase in US same-store sales rose 13.5% for the first quarter of 2020.
Annual Forecast For Earnings
Wendy's Co has raised its annual forecast for earnings, betting that its revamped, bacon-loaded breakfast menu will bring in more customers as restaurants reopen for dining after COVID-19 restrictions are eased.
The company has invested millions of dollars in its breakfast menu over the past year to hire staff and market its morning offerings.
"We got to get this great food in consumers' mouths," Wendy's CEO Todd Penegor told analysts.
Penegor expects more customers to make Wendy's a part of their breakfast routine as they get back to eating breakfast in restaurants rather than making it at home.
"Breakfast is very habitual...we got to continue to be able to build the habit to use the brand for breakfast rather than just dinner," Penegor added.
Sales And Adjusted Earnings Expectations
The company expects sales from its breakfast category to grow 30% in 2021.
For the year, Wendy's expects adjusted earnings of between 72 cents and 74 cents per share, up from its prior projection of 67 cents to 69 cents.
Quarterly Dividend And Repurchase Programme
It hiked its quarterly dividend by 11% to 10 cents per share and increased its share repurchase programme by $50 million.
Cowen Analyst Statement
"Wendy's is participating in the industry's sales euphoria," Cowen analyst Andrew Charles said, referring to fast-food chains returning to growth boosted by stimulus measures and vaccine distributions.
Same-Store Sales And Earning Per Share Figures
Wendy's US same-store sales rose 13.5% in the quarter, beating estimates of 9.84%, according to IBES data from Refinitiv. On an adjusted basis, it earned 20 cents per share, five cents more than estimates.