Wendy’s Cuts Forecast as Q1 Earnings Fall Short (WEN)


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Fast food giant The Wendy's Company ( WEN ) on Tuesday posted first quarter earnings that missed Wall Street expectations and lowered its full-year outlook.

The Dublin, OH-based company reported first quarter net income of $12.4 million, or 3 cents per share, compared with a net loss of $1.4 million, or breakeven per share, in the year-ago period. Excluding one-time gains, adjusted profit was 1 cent per share.

Revenue rose 2% from last year to $593.2 million.

On average, Wall Street analysts expected a higher profit of 3 cents per share, on larger revenue of $608.1 million.

Looking ahead, WEN said it now expects full-year adjusted 2012 earnings of $320 million to $335 million, down from a prior outlook of $335 million to $345 million.

Wendy's shares fell 12 cents, or -2.5%, in premarket trading Tuesday.

The Bottom Line
Shares of Wendy's ( WEN ) have a 1.64% dividend yield, based on last night's closing stock price of $4.87. The stock has technical support in the $4.20-$4.40 price area. If the shares can firm up, we see overhead resistance around the $5.00-$5.40 price level.

The Wendy's Company ( WEN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.8 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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