Wendy’s (WEN.US) stock rose sharply after today’s market open, climbing to highest levels since October 2020. Nevertheless, the share price unexpectedly turned into the negative territory.
The fast food-chain company released better-than-expected Q1 earnings. The firm’s net income totaled $41.4 million, or 18 cents a share, up from $14.4 million last year. Adjusted EPS of 20 cents managed to beat the FactSet consensus estimate of 15 cents. Revenue of $460.2 million also topped analysts’ expectations (FactSet consensus: $445.0 million). The company decided to raise its dividend by 11% to 10 cents a share and also raised its share repurchase plan by $50 million. Moreover, Wendy’s boosted its full-year guidance and now expects an adjusted EPS of 72 cents to 74 cents, and 8-10% global systemwide sales growth (previously: 6-8% sales growth).
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile app
Wendy’s (WEN.US) climbed to highest levels since October 2020, yet sellers managed to gain control afterwards. The sudden plunge might have been provoked by the market sell-off in US equity markets. It is worth to notice that Wendy’s share price have been moving in an upward trend for the past several weeks so it is reasonable to thing that some investors realised their profits too. Source: xStation5
