Wendy’s quarterly sales disappoint as harsh U.S. winter hits store traffic [Toronto Globe and Mail (Ontario, Canada)]
McDonald's Corporation (MCD)
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Source: Toronto Globe and Mail
Wendy’s Co WEN-Q missed Wall Street estimates for quarterly results as fierce storms and freezing temperatures across the United States earlier this year hit store traffic and cooled demand for the burger chain’s breakfast items. Shares of the Dublin, Ohio-based fast-food chain fell as much as 13 per cent to hit an over two-year low on Wednesday, after the company said it now expects breakfast sales for the full year to linger toward the lower end of the 10 per cent to 20 per cent growth range it had projected earlier. Analysts have said Wendy’s breakfast menu – known for items including the Baconator burger and Frosty-ccino coffees – could face pressure from consumers turning to cheaper meals as rising inflation hit Americans’ pockets. “I view the first quarter results really as a little bump,” said Wendy’s Chief Financial Officer Gunther Plosch. Wendy’s company-operated restaurant margin fell to 11.6 per cent in the quarter ended April 3 from 17 per cent a year earlier due to higher
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