Wendy's stock experiences a decline as it misses Q4 earnings estimates and provides disappointing guidance, while reporting a minor decline in fourth-quarter earnings. Global same-restaurant sales growth also falls short of forecasts.
Shares of Wendy's experienced a decline on Thursday following the fast-food chain's failure to meet fourth-quarter earnings expectations and its issuance of underwhelming guidance.
Wendy's stated that it anticipates earnings of between 98 cents and $1.02 per share for 2024. This projection falls short of the $1.11 per share estimated by analysts surveyed by FactSet.
The maker of the popular Baconator reported fourth-quarter earnings of 21 cents per share, which is slightly below Wall Street's estimated 23 cents and a minor decline from last year's 22 cents. Although revenue for the quarter reached $540.7 million, it fell short of analysts' expectations of $547 million, although it did show an increase from the previous year's $535.5 million.
Unfortunately, global same-restaurant sales growth for the quarter was only 1.3%, missing the consensus forecast on FactSet of 2.5%.
Wendy's Chief Executive, Kirk Tanner, expressed in a press release that the company had made significant progress in various areas, such as digital sales acceleration, opening approximately 250 new restaurants worldwide, and successfully expanding the margin of U.S. company-operated restaurants to pre-Covid levels, despite experiencing considerable inflationary pressures in recent years.
In premarket trading on Thursday, Wendy's shares were declining by 2% and were valued at $18.90. Over the past 12 months, the stock has witnessed a decrease of 16%. Meanwhile, McDonald's shares were down by 0.5%, while Restaurant Brands, the parent company of Burger King, saw a slight increase of 0.4%.
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