By Sam Boughedda
Wendy’s (NASDAQ:) shares fell over 3% in early Wednesday buying and selling after the corporate reported earnings earlier than the opening bell, topping earnings estimates however lacking income expectations.
The quick meals chain reported second quarter of $0.24 per share, $0.02 above the consensus estimate of $0.22. Nonetheless, income for the quarter got here in at $537.8 million, beneath the consensus estimate of $539.22 million.
Wendy’s U.S. same-store gross sales elevated 2.3% within the quarter, additionally lacking analyst estimates of a 2.8% rise as inflation hits client wallets.
“Our enterprise continued to outperform the competitors and our franchisees are working from a place of power after attaining document income throughout the US and Canada in 2021,” mentioned Wendy’s President and Chief Government 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 international systemwide gross sales progress between 6% and eight%.
Reacting to the report, a Goldman Sachs analyst in a be aware to shoppers, said: “We anticipate WEN to underperform immediately on the decrease US SSS tendencies, margin miss, and decrease than anticipated international unit progress.”