The Wendy’s Co Earnings: Here’s Why Shares are Down Now

The Wendy’s Co (NYSE:WEN) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.63%.

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The Wendy’s Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 200% to $0.03 in the quarter versus EPS of $0.01 in the year-earlier quarter.

Revenue: Rose 1.77% to $603.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wendy’s/Arby’s Group, Inc. reported adjusted EPS income of $0.03 per share. By that measure, the company met the mean analyst estimate of $0.03. It missed the average revenue estimate of $613.65 million.

Quoting Management: “Our solid first-quarter profitability increase was in line with our expectations,” President and Chief Executive Officer Emil Brolick said. “The momentum from our ‘Recipe to Win’ brand transformation, Image Activation progress and results from our new ‘Right Price, Right Size Menu™’ translated into strong earnings growth in the first quarter. We generated positive same-store sales and overcame the negative impact from the New Year and Easter holiday shifts, as well as adverse weather conditions. We have also seen a solid consumer response to the April introduction of our new Flatbread Grilled Chicken sandwiches, although the price-value component of our business continues to represent a challenge.”

Key Stats (on next page)…

Revenue decreased 4.16% from $629.88 million in the previous quarter. EPS decreased 66.67% from $0.09 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.05 to a profit $0.06. For the current year, the average estimate is a profit of $0.19, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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