Wendy's Stock Rises After Narrowly Missing Revenue Estimate

Wendy's shares rose after the chain missed the mark on earnings and revenue but reported almost all its U.S. outlets were open for business.
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Shares of Wendy's  (WEN) - Get Report on Wednesday rolled higher after the chain missed the mark on first-quarter revenue and adjusted earnings but reported almost all its U.S. outlets were open for business.

Wendy's stock at last check moved up 3.7% to $19.51 a share. They'd closed Tuesday trading off 2.4%.

The Dublin, Ohio, restaurant chain reported a 36% drop in adjusted first-quarter earnings per share, to 9 cents from 14 cents in the year-earlier quarter. The latest figure rang in below the 10-cent-a-share estimate of analysts surveyed by FactSet.

The company reported revenue eased 0.9% to $405 million from $408.6 million for the year-earlier period. That also missed the FactSet consensus of $414 million for the quarter.

Wendy's is also scrambling to deal with an apparent shortage of hamburger as the coronavirus sweeps through meatpacking plants and disrupts their operations.

Stephens analyst James Rutherford, in a research note released Tuesday, found that one in five Wendy's restaurants around the country were out of hamburger, Barron's reported.

Wendy's, in a news release on its first-quarter earnings, said it had "made changes to evolve and simplify our menu" as it worked to keep supplies flowing to its restaurants.

Wendy's told Barron's it was still delivering hamburger to its restaurants two to three times a week, though it also noted that some menu items are "temporarily limited ... in this current environment."

Even so, Wendy's reported the vast majority of its restaurants are open for business, with 99% in the U.S. still ringing up orders and 96% worldwide.