Nov. 7 at 8:53 PM
Wendy’s reported adjusted earnings of
$0.24 per share, beating the
$0.20 consensus despite a 3% revenue drop to
$550 million. Global sales fell 2.6%, driven by a 5% decline in the U.S., partly offset by 8.6% growth abroad from new restaurants. The company plans to close hundreds of underperforming locations.
Shares initially rose on the earnings news and turnaround hopes but later reversed, closing down 1.8% at
$8.68 after touching
$10.12. The stock is down 44% year to date.
Leadership uncertainty has weighed on sentiment since former CEO Kirk Tanner left for Hershey. Interim CEO Ken Cook is leading “Project Fresh,” a plan to modernize restaurants, simplify operations, and improve profitability. Wendy’s is focusing on boosting same-store sales rather than expansion, cutting costs, and investing in digital tools.
Company-owned stores outperformed franchise units by four percentage points in same-store sales last quarter.
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