"Wendy's ( NASDAQ: WEN) delivered a mixed fourth quarter as the fast-food chain navigates mounting cost pressures and accelerating traffic declines. The company reported revenue of $543.0 million, narrowly topping the $541.3 million consensus estimate, while adjusted earnings per share of $0.16 beat expectations of $0.15. But beneath the headline beat lies a troubling reality: U.S. same-restaurant sales plunged 11.3% as consumers pulled back on restaurant spending, and operating margins contracted 380 basis points to 12.7%."
"Company-operated restaurant margins fell to 12.7%, down from 16.5% in the prior-year quarter, as labor inflation and commodity pressures overwhelmed operational improvements. Adjusted EBITDA declined 17.6% to $113.3 million, while operating income dropped 33.3% to $64.0 million. The margin deterioration stands in stark contrast to category leader McDonald's ( NYSE: MCD), which maintains operating margins of 46.9% through superior scale and pricing power."
Wendy's reported fourth-quarter revenue of $543.0 million and adjusted EPS of $0.16, narrowly beating estimates, but U.S. same-restaurant sales plunged 11.3% and company-operated margins contracted 380 basis points to 12.7%. Full-year revenue fell 3.1% to $2.18 billion and net income declined 15.1% to $165.1 million. Adjusted EBITDA dropped 17.6% to $113.3 million and operating income fell 33.3% to $64.0 million. Shares have fallen 45.77% over the past year to $7.27. Management is betting heavily on an expanded value platform to stabilize traffic.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]