The Wendy's CompanyNYSE
Tue, Oct. 18, 10:02 AM
- A pretty interest pullout from today's release of consumer price numbers from the Bureau of Labor Statistics was the comparison between food prices at home and at restaurants (H/T Jonathan Maze of Nations Restaurant News).
- September CPI data: Food at home -2.2% Y/Y and -0.1% M/M, food away from home +2.4% Y/Y and +0.2% M/M
- The high cost of eating out is seen by analysts as a major factor in why traffic has been falling this year. Rising healthcare and labor costs have pressured restaurant chains to ratchet up prices.
- Some related stocks: MCD, WEN, DIN, EAT, CBRL, QSR, JACK, BWLD, NDLS, PNRA, BJRI, BLMN, IRG, CAKE.
- Related ETF: BITE.
Mon, Oct. 17, 1:18 PM
- Same-store restaurant sales were negative for the fourth consecutive month in September, with a drop of 1.1%, according to data from Black Box Intelligence.
- Same-store traffic was 3.5% lower Y/Y during the month. Higher prices partially offset the traffic decline.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, WING, BOJA, ZOES, FOGO, ARCO, SHAK, YUM.
- Related ETF: BITE.
Sat, Oct. 8, 9:09 AM
- Retailers want the U.S. election over and quick. The negative tone has created a degree of uncertainty with consumers that has impacted spending and traffic patterns, according to a host of top execs.
- "There is just great uncertainty as to what is going to happen in the U.S. in particular as a result of the outcome of the election," noted Yum Brands (NYSE:YUM) CEO Greg Creed recently. "People may be hunkering down a little bit," he added.
- Expect the topic to be raised on a large number of Q3 earnings calls over the next month to explain away revenue misses.
- It's not an excuse that everyone is buying into. Retail Metrics president Ken Perkins doubts that daily shopping needs are cut short by election fascination and notes consumer confidence is measuring high. Then there's Amazon (NASDAQ:AMZN) which seems to be rolling right along without any Clinton-Trump fatigue.
- Beyond the election wildcard, two underestimated factors impacting some retailers in a more concrete way are the lower level of SNAP (food stamps) benefits being paid out by the government and the elevated cost of health care. There is also the massive challenge with a millennial generation that shuns chains. Just ask anyone in the restaurant sector (NASDAQ:BITE).
- Add it all up and it makes for a challenging period for a mix of retailers that includes Dollar General (NYSE:DG), Dollar Tree (NASDAQ:DLTR), Fred's (NASDAQ:FRED), Ross Stores (NASDAQ:ROST), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), Staples (NASDAQ:SPLS), McDonald's (NYSE:MCD), Popeyes Louisiana Kitchen (NASDAQ:PLKI), Wendy's (NYSE:WEN), Supervalu (NYSE:SVU), Kroger (NYSE:KR), SIgnet (NYSE:SIG), TJX Companies (NYSE:TJX), and Casey's General Stores (NASDAQ:CASY).
- Retail ETFs: XLY, XRT, VCR, RTH, RETL, IYK, FXD, IYC, FDIS, SCC, RCD, UCC, PMR, UGE, SZK, CNDF, FTXD, JHMC.
Tue, Sep. 20, 9:34 AM
- Nomura highlights in a new note the lengths that traditional fast-food chains are going in order to lure in adventuresome millennials.
- Wendy's (WEN +0.1%) is testing a truffle burger which features truffle aioli, truffle parmesan cheese sauce, and a croissant bun
- McDonald's (MCD +0.9%) just finished up with a regional run of a Pesto Mozzarella Melt sandwich that included kale and spinach.
- While menu innovation is nothing new for the chains, the most recent test offerings indicate that the chains may be looking to steal traffic from Panera Bread and Starbucks as much as Burger King and Taco Bell.
Sat, Sep. 10, 12:17 PM
- The sluggish trend continues in the restaurant sector with same-store sales down 0.6% in August, according to the latest read from Black Box Intelligence.
- Same-store traffic was 2.7% lower Y/Y during the month to improve on the 3.9% drop recorded in July. Average guest check across the industry was up 2.3% to help offset for some of the loss of customers.
- Another weak month in the Southwest (sales -5%, traffic -7%) doesn't bode well for chains with a high concentration of stores in Texas.
- Though the broad read from analysts is that consumer spending is still tight in the U.S., there are also some concerns that restaurant chains are having trouble building brand loyalty with millennials giving their business to independent eateries.
- Restaurant stocks: CAKE, CBRL, DNKN, DPZ, DRI, EAT, JACK, MCD, RRGB, RT, SONC, WEN, BWLD, BDL, QSR, CHUY, BLMN, PZZA, TXRH, DENN, KKD, BBRG, DFRG, BOBE, RUTH, IRG, DIN, HABT, NDLS, BOJA, PBPB, PLKI, FRSH, RAVE, LOCO, TACO, PZZA, KONA, BGR, BJRI, CHUY, FRS, CBRL, GTIM, TAST, WING, BOJA, ZOES, PLAY, FOGO, ARCO, STKS, WING.
- Related ETF: BITE.
Thu, Aug. 11, 2:57 PM
- Wendy's (WEN +0.4%) CEO Todd Penegor confirmed that a consumer trend of eating home is at play, although he pointed to pricing not civil discontent as the larger factor.
- "The continued gap in the cost of eating at home and dining out is at the widest point since the recession," stated Todd Penegor.
- Just a partial list of restaurant chains that disappointed with their Q2 comparable sales growth marks includes Brinker International (NYSE:EAT), Bojangles (NASDAQ:BOJA), Red Robin Gourmet Burgers (NASDAQ:RRGB), Habit Restaurants (NASDAQ:HABT), Bravo Brio Restaurant Group (NASDAQ:BBRG), Cosi (NASDAQ:COSI), Bloomin' Brands (NASDAQ:BLMN), Buffalo Wild Wings (NASDAQ:BWLD), and Noodles (NASDAQ:NDLS).
- Wendy's earnings call transcript
- Related: Consumers trade down to fast food (Aug. 4)
Wed, Aug. 10, 7:56 AM
- Wendy's (NASDAQ:WEN) reports same-restaurant sales rose 0.4% in North America in Q2. Management cited "challenging industry conditions" as a drag on traffic.
- The company'a adjusted EBITDA rate expanded to 26.8% from 21.3% a year ago off improvements from the new system optimization initiative.
- Wendy's expects same-restaurant sales increasing 1% to 2% for the full year which is below the expectation of analysts. The company adjusts 2016 EPS guidance to $0.39-$0.40 vs. $0.38-$0.40 prior.
- CEO Todd Penger on strategy: "Going forward, we intend to buy and sell restaurants to act as a catalyst for growth by further strengthening our franchisee base, driving new restaurant development and accelerating Image Activation adoption."
- Previously: Wendy's beats by $0.01, beats on revenue (Aug. 10)
- WEN -3.34% premarket to $9.85.
Wed, Aug. 10, 7:31 AM
Tue, Aug. 9, 5:30 PM
Thu, Aug. 4, 5:45 PM
Thu, Aug. 4, 2:39 PM
- Fast food restaurant traffic increased 5% faster than fast casual traffic in the first half of the year, according to a breakdown by location tracker xAd. Fast food visit growth topped fast casual in the West and South parts of the U.S.
- Fast food market share (16 top chains included): McDonald's (NYSE:MCD) 36%, Subway 14%, Burger King (NYSE:QSR) 11%, Wendy's (NASDAQ:WEN) 8%, Taco Bell (NYSE:YUM) 8%, Chick-fil-A 6%, Pizza Hut and KFC (YUM) 4%, Jack in the Box (NASDAQ:JACK) 4%.
- The two chains making the most of the late night dining hours are Jack in the Box and Domino's Pizza, with both making a huge jump in late night market share during the tracking period.
Tue, Aug. 2, 8:53 AM
- RBC Capital drops Wendy's (NASDAQ:WEN) to a Sector Perform rating from Outperform after lowering its estimate for same-store sales growth over the last month.
- The investment firm turns cautious with tougher comparisons ahead for Wendy's and "low visibility" into future marketing strategy.
- Shares of Wendy's are down 1.44% premarket to $9.59. For the year, Wendy's trails the returns of McDonald's and Jack in the Box by a wide margin.
Thu, Jul. 28, 1:17 PM
- Chipotle (CMG +0.6%) will open its first hamburger restaurant this fall when a Tasty Made shop opens in Lancaster, Ohio.
- The new concept will focus on a limited menu featuring burgers, fries, and milkshakes, reports Eater.com. Tasty Made will use the "Responsibly Raised" brand of beef from animals raised without the use of antibiotics or added hormones.
- "We think there’s great strength in that original fast food model and wanted to create a restaurant built around that," says Chipotle CEO Steve Ells.
- Pricing and expansion plans of the Tasty Made chain will be of interest to hamburger chains McDonald's (NYSE:MCD), Sonic (NASDAQ:SONC), Shake Shack (NYSE:SHAK), Habit Restaurants (NASDAQ:HABT), Burger King (NYSE:QSR), and Wendy's (NASDAQ:WEN).
Thu, Jul. 28, 8:53 AM
- Donald Trump said he would like to raise the federal minimum wage to $10 per hour. The surprising disclosure came at a press conference yesterday in Florida, although he seemed to walk it back a bit later in the day.
- Hillary Clinton supports a $12 per hour national level, but is open to state and cities that go higher with the minimum wage.
- A higher federal minimum wage could pressure restaurant chains operating in states where the lowest pay scale in nearer to the $7.25/hour floor.
- Related stocks: CBRL, DNKN, DPZ, JACK, MCD, RT, WEN, BOBE, TACO, RAVE, BH, PLAY, IRG, DIN, PZZA, PLKI, SONC, LOCO, FRSH, BOJA, FRGI, WING, PBPB, NATH, FRS.
- Related ETF: BITE.
Fri, Jul. 15, 2:24 PM
- Same-store sales growth in the restaurant sector fell 1.1% in June, according to Black Box Intelligence.
- Same-store traffic was down 3.5% Y/Y during the month and 3.0% for all of Q2. The worst numbers were posted in the Southwest part of the U.S. That data point, along with the recent issues at Taco Bell (weak Q2 U.S. sales) and Chipotle (survey results), raises questions on how Chuy's Holdings (NASDAQ:CHUY), Qdoba (NASDAQ:JACK), and Del Taco (NASDAQ:TACO) fared during the quarter.
- The weak month of same-store sales growth also puts a spotlight on McDonald's (NYSE:MCD) and Starbucks (NASDAQ:SBUX) to see if they matched their recent performances in the U.S.
- Earlier sector news: Restaurants see some relief on commodity costs (July 15)
- Related stocks: EAT, WEN, SONC, QSR, CMG, NDLS, PLKI, BOBE, BLMN, RT, TXRH, RRGB, ZOES.
- Related ETF: BITE.
Thu, Jul. 14, 9:34 AM
- Niantic Labs appears set to allow businesses to officially sponsor locations for in-game activities for Nintendo's (OTCPK:NTDOY, OTCPK:NTDOF) Pokémon, according to media reports.
- That's not news to followers of Reddit posts which dug deep into the Pokémon code to discover bits with "McDonald's" already in it (see code here)
- Though the monetization of the Pokémon phenomenon was widely expected, it also has deeper implications for retailers even beyond trying to scrap for foot traffic through establishing Lure modules, PokeStops, and Pokemon Gyms. Pokémon may come and go. The intersection of real-world shopping and augmented reality games is probably here to stay.
- Companies with an eye on augmented reality and location-based entertainment as it relates to increasing traffic run far and wide. Restaurants (QSR, SBUX, MCD, CMG, WEN, NDLS, PNRA, DNKN), store chains (GPS, AEO, ANF, TGT, ROST, DG, DLTR), and movie theaters (AMC, CKEC, IMAX, CNK, RGC) come to mind.
- Google (GOOGL, GOOG) is also keeping track of all the Pokémon developments as it served as an incubator for Niantic Labs up until the Alphabet creation. Recode says it's unclear what stake that Google still has in the software developer.
- Pokémon news on Seeking Alpha