What happened
Shares of fast-food chain Wendy's (WEN 2.96%) pulled back today, following the company's third-quarter earnings release. Shares fell as much as 7.9%, but the stock is trading 2.6% lower as of 2:20 p.m. EST.
Bearish sentiment toward the stock likely reflects a number of takeaways from the report, including worse-than-expected earnings per share and revenue, and a reduced outlook for full-year profitability.
Image source: Getty Images.
So what
For its third quarter, Wendy's reported adjusted EPS and revenue of $0.09 and $308 million, respectively. On average, analysts expected adjusted EPS and revenue of $0.12 and $312 million. These results compare to adjusted EPS and revenue of $0.11 and $364 million in the year-ago quarter.
The worse-than-anticipated results come as the company suffers some setbacks from hurricanes. Wendy's estimated that hurricanes negatively impacted same-restaurant sales in its North American system by 30 to 40 basis points.
Now what
For the full year, Wendy's said it now expects same-store sales growth between 2% and 2.5%, down from a previous forecast of 2% to 3%. Wendy's also said it now expects adjusted EPS of $0.43 to $0.45, down from previous guidance for $0.45 to $0.47.
