Wendy's Lowers Sales Forecast Amid Declining U.S. Visitor Numbers

Published 2 hours agoWEN

Wendy's Lowers Sales Forecast Amid Declining U.S. Visitor Numbers

Wendy's has revised its sales projections for the year, now expecting global systemwide sales growth of 3% to 5%. This is a notable decrease from the company's earlier forecast of up to 6% growth, as reported by Bloomberg. The shift reflects changing consumer spending habits in the current economic climate.

The decision to lower sales expectations comes on the heels of slower-than-expected growth in same-store sales for locations open at least 15 months. This suggests a decline in U.S. customer traffic, likely driven by inflation-driven price hikes that have notably affected low-income diners. Wendy's isn't alone in facing this issue; competitors like McDonald's are experiencing similar trends according to BNN Bloomberg.

Despite the downward revision in sales guidance, Wendy's is taking steps to boost its business by expanding offerings in breakfast and late-night menus, introducing new items like the Triple Berry Frosty milkshake and innovative chicken nuggets, and enhancing its digital app. Moreover, the company maintains an earnings per share guidance of at least $0.98 for the year, aligning with the second-quarter results that met market expectations.

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