Sam Boughedda

Investing.com — The Wendy’s Co (NASDAQ:) reported its first-quarter earnings on Wednesday, missing estimates after rising inflation resulted in higher costs and reduced customer spending.

Comparatively to last year, Q1’s revenue increased by 6.2%. But, revenue for Q1 was lower than expected at $497.91 millions, as opposed to $488.64million. The earnings per share were $0.17 for the fast-food chain, which was lower than forecasts. 

According to the company, lower profits were due to higher general and administration expenses. Company-operated restaurants had a margin of around 5%. The company’s investment to enter the UK markets has had an impact on customer counts and commodity costs. 

Wendy’s president and CEO Todd Penegor said, “We’re in a strong position to win in this volatile climate, with strong franchie alignment behind the strategies we use, and have strengthened [our balance sheet] with the successful loan raise transaction that was recently completed.”

Additionally, the company declared a quarterly cash dividend of 12.5c per share. This will be payable on June 15. 

Wendy’s predicts that global systemwide sales will grow between 6% to 8% by 2022. The adjusted earnings per share is between $0.82 and 0.86. 

Wendy’s shares tumbled Wednesday. The stock is at $16.50 as of the writing. It’s down 8.8%