Wendys Reports Mixed Q2 Results, Guidance Above Consensus
Key Takeaways
Wendys Co (NASDAQ: WEN) reported its second-quarter earnings on Thursday that topped analysts' estimates for earnings but missed on revenue. The fast-food chain also declared a quarterly cash dividend of 25 cents per share payable on September 17th.
Wendys posted $467.9 million of revenue in Q2 that represents a 1.9% annualised decline. Its net income was capped at $36.3 million that translates to $0.32 per share. In comparison, it had recorded $61.7 million of net income in the same quarter of last year or $0.54 per share. Adjusted for one-time items, the company earned 56 cents per share in Q2.
According to FactSet, analysts had forecast the company to post 54 cents of adjusted EPS on $471.42 million of revenue. Wendys' comparable-restaurant sales saw a 0.6% annualised decline in the recent quarter. The company attributed the decline to the temporary dining room closures due to the COVID-19 restrictions in Canada.
For the full year, Wendys now forecasts its adjusted EPS to fall in the range of $2.10 to $2.12. It expects comparable-restaurant sales to remain unchanged versus a prior estimate of a 1% increase.
Outlook
CEO Todd Penegor commented on the earnings report on Thursday and said: "We delivered comparable sales growth in the quarter, even as we lapped strong performance in the prior year period and faced significant operational headwinds from the ongoing pandemic."
"We are reiterating our 2021 outlook, which includes an anticipated acceleration in the back half of the year as we continue to navigate this dynamic market and execute against our long-term growth strategy," he added.
Wendys shares were reported about 1% down in premarket trading on Thursday.
Comments