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The tepid forecast comes as rival fast-food chains McDonald’s (NYSE:MCD) and Taco Bell parent Yum Brands launch new menu items and collaborate with celebrities to lure more customers.
Wendy’s (NASDAQ:WEN) said higher labor costs have pressured its margins as restaurants grapple with a tight labor market, making it difficult for them to ensure staffing and forcing some like Domino’s Pizza (NYSE:DPZ) to cut store hours.
Wendy’s U.S. same-store sales rose 2.1% in the third quarter ended Oct. 3, falling short of analysts’ average estimate of 4.4%, according to Refinitiv data.
The fast-food chain said it now expects annual adjusted earnings between 79 cents and 80 cents per share, compared with its prior range of 79 cents to 81 cents. Analysts were expecting annual earnings of 82 cents.
Total revenue rose to $470.3 million from $452.2 million a year earlier, marginally exceeding expectations of $470.2 million.
