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Wendy’s misses U.S. same-store sales estimates on stiff competition -Breaking

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© Reuters. FILE PHOTO A Wendy’s Co. restaurant in Monrovia is shown on November 4, 2015, California. REUTERS/Mario Anzuoni

(Reuters) – Wendy’s NASDAQ: Co fell short of Wall Street’s quarterly U.S. Same-Store Sales Growth estimates on Wednesday. The hamburger chain is struggling with rising competition and the labor shortages that have struck the restaurant sector.

Due to a weak labor market in the United States, many restaurants are having difficulty staffing their stores adequately. The result was a decrease in quarterly sales at Yum Brands’ Pizza Hut and Domino’s Pizza (NYSE) Inc.

Wendy’s also faces increasing competition from other fast-food restaurants like McDonald’s (NYSE) and Yum Brands. They have doubled their marketing budgets and created new menu options to appeal to more customers.

According to Refinitiv IIBES, Wendy’s U.S. Same-Store Sales rose 1.1% during the quarter that ended April 3. This compares with an average analyst estimate of a 2.2% increase.

The total revenue increased to $488.6 millions, up from $460.2million a year prior. However, the estimates for $496.9 million were also missed.

After $41.4 million or 18 cents a share, the net income was $37.4 millions, or 17 Cents per share.

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