US Markets
WEN

Wendy's points to sales recovery after COVID-19 hit

Credit: REUTERS/LUCY NICHOLSON

Wendy's Co saw a recovery in sales in June and July as lockdown restrictions eased in some parts of the United States, after the burger chain narrowly beat market estimates for profit on Wednesday, following the launch of its breakfast menu.

Adds profit comparison, background, details on share buyback program

Aug 5 (Reuters) - Wendy's Co WEN.O saw a recovery in sales in June and July as lockdown restrictions eased in some parts of the United States, after the burger chain narrowly beat market estimates for profit on Wednesday, following the launch of its breakfast menu.

The company said its breakfast menu had a strong second quarter at a time when other chains such as McDonald's MCD.N and Starbucks SBUX.O have said they are facing pressure as people working from home are increasingly cooking their meals.

Wendy's U.S. same-store sales rose 8.2% in July after posting a 5.1% growth in June. The sales had declined in April and May.

Excluding one-time items, the company earned 12 cents per share in the second quarter ended June 28, compared with analysts' average estimate of a profit of 11 cents per share, according to IBES data from Refinitiv.

Revenue, however, fell about 8% to $402.3 million, missing the estimate of $409.7 million.

Wendy's also said on Wednesday it intended to resume share repurchases in 2020. The board extended its existing $100 million share repurchase authorization by another year, which now expires in Feb. 2022.

(Reporting by Praveen Paramasivam in Bengaluru; Editing by Shinjini Ganguli)

((Praveen.Paramasivam@thomsonreuters.com;))

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

In This Story

WEN MCD SBUX

Latest Markets Videos

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More