By Dean Seal
Wendy's cut its sales and profit outlook for the year, citing trend shifts in the current consumer environment.
The burger chain said Thursday that it now expects 2025 sales to be flat with last year's total at best, and for the figure to potentially fall up to 2%. Back in March, the company reaffirmed guidance for sales to rise 2% to 3% this year.
The Dublin, Ohio, company also said it now expects full-year adjusted earnings of 92 cents to 98 cents a share, instead of 98 cents to $1.02 a share as previously projected.
The downshift came as Wendy's posted a first-quarter profit of $39.2 million, or 19 cents a share, compared with $42 million, or 20 cents a share, in the same quarter a year earlier.
Stripping out one-time items, adjusted earnings were directly in line with analyst targets at 20 cents a share, according to FactSet.
Revenue slid 2.1% to $523.5 million, just under analyst estimates for $525 million.
Same-restaurant sales in the U.S. came in lower, with new restaurant openings and same-restaurant growth overseas failing to offset the decline.
The company also brought in lower revenue from advertising funds and franchise royalties.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
Wendy's released its first-quarter earnings report on Friday, May 2. "Wendy's No Longer Expects Sales to Grow This Year," at 7:28 ET, incorrectly said the report was released Thursday.
(END) Dow Jones Newswires
May 02, 2025 07:59 ET (11:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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