On Friday, March 12th, 2021, Rebel Foods Ltd. Prepared a Wendy food order in Noida, India.
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The breakfast bet is paying off as Wendy reported a better-than-expected result on Wednesday and raised the forecast for the year.
The fast food chain’s stocks fell about 2% recently as stocks in the broader market fell. After the earnings were released, the stock was up more than 5%.
Adjusted earnings are now expected to be between 72 and 74 cents per share, compared to previous adjusted earnings estimates of between 67 and 69 cents per share.
The company spent $ 3.5 million on advertising to promote its breakfast items. An improvement in sales is expected for both international business and the breakfast menu.
“We couldn’t be happier with the momentum in our business that continued into the first quarter of 2021 as sales exceeded our expectations and fueled our restaurant business model, resulting in oversized profits,” said President and CEO Todd Penegor for the Result call.
For the first quarter, reported net income for the company increased from $ 14.4 million, or 6 cents per share, to $ 41.4 million, or 18 cents per share, a year ago.
When adjusted, Wendy’s earned 20 cents per share, beating the average analyst estimate of 15 cents per share published in a refinitive poll.
Revenue increased from $ 405 million a year ago to $ 460.2 million. That was also higher than the $ 444 million forecast by analysts.
The global sales of the restaurant chain in the same store increased by 13% compared to the previous year.
Wendy’s said a recently launched chicken sandwich sold very well during the quarter.
“The strength of the classic chicken and the success of the jalapeno popper allowed us to do very well in the chicken sandwich category. In fact, our share of breaded chicken sandwiches within QSR grew in March, despite significant competitive activity,” Penegor said.
Both KFC and McDonald’s from Yum Brands recently launched chicken sandwiches. The category has gotten so hot that it is slowly becoming scarce chicken supplies.
Wendy’s repurchased $ 56 million of shares in the first quarter and increased share buyback approval by $ 50 million to $ 150 million.