Wendy's/Arby's Posts Loss, Shares Plummet

Wendy's/Arby's Group(WEN Quote) narrowed its loss in the first quarter, missing analysts' expectations and sending shares tumbling in morning trading.

During the quarter, the company recorded a loss of $10.9 million, or 2 cents a share, compared with a loss of $67.5 million, or 73 cents, in the year-ago period. Analysts expected a profit of 3 cents.

Revenue more than doubled to $773.2 million from $281.6 million. In the first quarter, same-store sales fell 8% at Arby's and rose 0.3% at Wendy's.

Traffic at fast-food restaurants saw its first quarterly decline since 2003, according to a report released by NPD Group on Wednesday. The fast-food segment posted a 1% drop in store traffic during the quarter ended in February.

Once the most insulated sector, offering cheap meals for families, these chains have been hurt as consumers opt to dine at home.

Bakeries, convenience stores, Mexican food restaurants and sandwich sellers were the best performers in the quick-service restaurant category, while the hamburger segment was flat. Those offering chicken, gourmet coffee and tea, and pizza saw traffic drop 9%, 4% and 2%, respectively.

Shares of Wendy's/Arby's sank 12% to $4.36 in early morning trading.