Wendy's shares sink after sales miss expectations, weak guidance
Wendy's Co. shares sank 6.3% in Wednesday premarket trading after it reported third-quarter sales and same-store sales that missed expectations during after hours. Net income totaled $391.2 million, or $1.60 per share, up from $14.3 million, or 6 cents per share, last year. Adjusted EPS was 17 cents. Revenue totaled $400.6 million, up from $308.0 million last year. Global same-store sales rose 1.7%, while North American same-store sales fell 0.2% for the period. The FactSet consensus was for EPS of 15 cents, revenue of $405.0 million, global same-store sales growth of 2.4% and domestic same-store sales growth of 1.9%. Wendy's expects 2018 North American same-store sales growth of 1% and adjusted EPS of 56 cents to 58 cents. FactSet expects same-store sales growth of 1.9% and EPS of 73 cents. Wendy's stock is up 4% for the year to date while the S&P 500 index is up 4% for the period. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.