Wendy’s Company (NASDAQ:WEN) shares climbed in premarket trading after the fast-food chain reported first-quarter results that topped Wall Street expectations and reaffirmed its full-year outlook despite continued margin pressure.
Short interest in the stock also remains elevated following a sharp rise in bearish positioning earlier this year, adding to Friday’s volatility.
Wendy’s Quarter In Detail
The company reported first-quarter adjusted earnings per share of 12 cents, beating the analyst consensus estimate of 10 cents. Quarterly sales of $540.637 million (+3.3% year over year) outpaced the Street view of $517.965 million. Adjusted revenues gained 2.2% to $432.3 million.
U.S. company-operated restaurant margin fell 340 basis points year over year to 11.4%. The decrease was primarily due to a decline in traffic, commodity inflation, and labor rate inflation. An increase in average check and labor efficiencies partially offset these.
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