Wendy’s reported earnings today with North American comps in focus. These comp sales came in a -0.2% vs. the analyst expectation of +1.7%.
Margins were also an issue with restaurant margins coming in 200bp worse than expected (15.7% vs. expected 17.9%)
Management attributed softer sales to increased industry competition, soft spending by lower income customers and several promotional strategies that haven’t driven sales as much as expected.
Wendy’s has recently started a $1 any size fry promotion and is hopeful that this new initiative can help to grow sales.