Markets
WEN

Wendy's Returns to Higher Growth in July

Fast food was fast becoming scarce during the pandemic as dining rooms closed across the country, but many restaurants were able to shift operations and meet new demands as dining went digital and customers picked up curbside. 

Burger chain Wendy's (NASDAQ: WEN) had a sales dip in the second quarter, but growth resumed in July as life continued on in most areas of the U.S.

Bring on the breakfast

Wendy's comps decreased 6% in the second quarter, which ended June 28. For comparison, McDonald's (NYSE: MCD) comps decreased 24% in a similar time frame. Earnings per share were $0.11, down from $0.14 last year. As of Aug. 2, 99% of U.S. stores and 90% of international stores are open.

A three-patty Wendy's hamburger.

Image source: Wendy's.

While many small restaurants have been forced out of business during the pandemic, the larger chains have been able to pivot to digital ordering and drive-thru, delivery, or curbside pickup options to keep cash flowing. Wendy's ended the quarter with $338 million in cash and cash equivalents, and it issued its regular $0.05 dividend on Wednesday. 

Sales decreased 15% in April and grew each month since, returning to growth in June and rising a high single-digit in July, with 8.2% U.S. comps growth. Breakfast and digital were huge growth drivers.

CEO Todd Penegor said in a statement, "I'm more confident than ever that we will achieve our vision of becoming the world's most thriving and beloved restaurant brand."

10 stocks we like better than Wendy's
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Wendy's wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 2, 2020

 

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More