Burger chain Wendy’s Co (WEN.O) reported quarterly revenue on Wednesday that fell short of analysts’ estimates, hit by tough competition in a crowded U.S. restaurant market.
The results come weeks after other established chains such as McDonald’s Corp (MCD.N), Chipotle Mexican Grill (CMG.N) and Starbucks Corp (SBUX.O) reported solid growth, driven by new menu additions and expanded delivery services. Wendy’s has also revamped its menu. The chain launched its $5 Biggie Bag combo offer in March, while it added a new line of chicken sandwiches to its ‘Made to Crave’ menu in April.
The efforts lifted same-stores sales growth 1.4%, roughly in line with analysts’ average estimate of 1.36%, but revenue missed. Total revenue rose 5.9% to $435.3 million, but came in below estimates of $439.9 million, according to IBES data from Refinitiv.
Net income rose 8.4% to $32.4 million from a year earlier. Excluding items, Wendy’s, which also reaffirmed its full-year adjusted profit forecast, earned 18 cents per share, beating estimate of 17 cents.