Wendy’s (WEN) Q1 2021 results beat

An order of Wendy food is prepared in Rebel Foods Ltd.’s cloud kitchen in Noida, India on Friday, March 12, 2021.

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Her bet on breakfast is paying off as Wendy announced better-than-expected results on Wednesday and raised her forecast for the year.

Shares of the fast food chain were recently down about 2% as overall market shares fell. After the publication of its earnings, the stock had risen by more than 5%.

He now expects adjusted earnings of between 72 cents and 74 cents per share, compared to previous estimates of adjusted earnings of between 67 cents and 69 cents per share.

The company spent $ 3.5 million on advertising to promote its breakfast products. He expects his overseas business and breakfast menu to improve in the future.

“We could not be more pleased with the momentum of our business which continued into the first quarter of 2021 as sales greatly exceeded our expectations and fueled our restaurant business model, resulting in outsized profits,” said the President and CEO from management Todd Penegor on the results. call.

In the first quarter, the company’s reported net income rose to $ 41.4 million, or 18 cents per share, from $ 14.4 million, or 6 cents per share, a year ago.

On an adjusted basis, Wendy’s gained 20 cents per share, beating average analysts’ estimates of 15 cents per share, published in a Refinitiv survey.

Revenue rose to $ 460.2 million from $ 405 million a year ago. It was also higher than the $ 444 million predicted by analysts.

The restaurant chain‘s global comparable store sales were up 13% from a year ago.

Wendy’s said a recently launched chicken sandwich sold very well during the quarter.

“The strength of the classic chicken, along with the success of the Jalapeno Popper, has allowed us to compete very well in the chicken sandwich category. In fact, our share of breaded chicken sandwiches within QSR increased in March. , despite competitive activity, ”said Penegor.

Yum Brands‘ KFC and McDonald’s have also recently launched chicken sandwiches. The category has been so hot that it is starting to encounter a chicken supply crunch.

Wendy’s repurchased $ 56 million of shares in the first quarter and increased its share repurchase authorization from $ 50 million to $ 150 million.

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