Wendys (WEN) Stock Dips Despite Q2 Same-Store Sales Increase

Earnings were below analysts' expectations

Wendys (NASDAQ:WEN) had a mixed quarterly earnings report that sent shares down after hours Tuesday as the company’s earnings missed expectations but its same-store sales were higher than they were a year ago once again.

Wendys (WEN)

The burger chain said that for its second quarter of fiscal 2018, it brought in revenue of $411 million, topping the $395 million it raked in during the year-ago quarter. The figure was ahead of the Wall Street consensus estimate of $407.6 million that seven analysts polled by Zacks Investment Research were calling for.

Wendys added that for the period, it brought in net income of $29.9 million, or 12 cents per share, which was ahead of the loss it amassed during the year-ago quarter. On an adjusted basis for non-recurring costs and asset impairment costs, the company brought in a profit of 14 cents per share.

Analysts were calling for the company to bring in adjusted earnings of 16 cents per share, according to data compiled by Zacks in an estimate of eight analysts. Wendys also reported an increase in its same-store sales growth of 1.9% for the period, marking the company’s 22nd consecutive quarter of positive same-store sales, which is a streak that no other burger chains have been able to achieve.

WEN stock was down about 0.4% during regular trading hours on Tuesday in anticipation of the company’s quarterly earnings results. Shares were down about 1.8% after the bell as the company missed the mark on the profit front.

Article printed from InvestorPlace Media, https://investorplace.com/2018/08/wendys-wen-2/.

©2020 InvestorPlace Media, LLC