Wendy’s (WEN.US) shares fell nearly 10.0% during today's session after the restaurant chain reported disappointing first quarter figures caused by increased competition amid supply and labor constraints.
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Company earned $0.17 per share, slightly missing analysts' estimates of $0.16 per share;
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Revenue of $488.64 million rose 6.2% compared to the prior year, however missed Wall Street projections of $497.91 million;
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Growth of global same-store restaurant sales slowed to 2.4% as compared to a double-digit rise in the prior year.
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"We are well positioned to win in this volatile environment, with strong franchisee alignment behind our strategies, and have strengthened our balance sheet with the successful debt raise transaction we recently completed," said Wendy's President and CEO Todd Penegor.
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The company will pay a quarterly cash dividend of 12.5 cents per share on June 15th.
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Despite negative Q1 results, Wendy's expects sales increase in the region of 6% to 8% in 2022, with adjusted earnings per share for the year predicted to be between $0.82 and $0.86.
Wendy’s (WEN.US) stock plunged over 33.0% since the beginning of 2022 and price is currently approaching major support around 15.60 which is marked with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5
