Wendy’s (WEN) and Chili’s (EAT) Still Getting Smacked Down by Ronald McDonald (MCD)
This morning, Wendy’s/Arby’s (WEN) and Chili’s parent company Brinker International (EAT) posted declining revenues. Total revenues for fast-food chain WEN dropped to $877 million from $912.7 million. The Arby’s units continue to slump across the board. Moreover, Wendy’s/Arby’s lowered its 2010 outlook.
One step higher on the dining food chain is casual diner Chili’s (85% of Brinker’s holdings). Chili’s same-restaurant sales fell 4.1%. On a brighter note, Maggiano’s Little Italy same-restaurant sales were up 1.3%. EAT earned some extra one-time cashola this quarter by dumping their On the Border Mexican Grill business to private equity firm Golden Gate Capital.
Based on what we’ve seen from McDonald’s (MCD), I think it’s safe to say both WEN and EAT are struggling in the current environment.
Disclosure: No positions.