Please ensure Javascript is enabled for purposes of website accessibility

Wendy’s Sales Dropped 20% in Recent Days

By Demitri Kalogeropoulos - Updated Mar 26, 2020 at 10:05AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The fast-food giant pulled its outlook as social distancing moves grip the industry.

The COVID-19 outbreak and related containment measures have started significantly impacting Wendy's (WEN 2.54%) business. The fast-food company said on Thursday that sales trends turned sharply lower in mid-March thanks to a raft of temporary restaurant closures and other moves aimed at slowing the spread of the virus.

Sales had been trending 4% higher through the first two months of the fiscal first quarter, right in line with management's forecast. However, that figure changed to a 20% decline during the week ended on March 22, the company said.

A woman takes a bite of a burger.

Image source: Getty Images.

"This is an unprecedented time," CEO Todd Penegor said, "and we are focused on the actions where we can make a positive difference." Wendy's joins businesses across the fast-food, casual dining, and sit-down dining niches in reporting major traffic declines in this era of social distancing. Darden Restaurants, the owner of Olive Garden, noted a similar 21% sales decline at the start of national virus containment measures.

Wendy's continues to offer drive-through, delivery, and to-go services across most of its sales footprint. The supply chain is operating smoothly, too.

But volumes are likely to drop significantly, and so the company withdrew its short-term and long-term business outlooks and is raising extra cash. Management promised investors more details about its operating trends when the company reports its first-quarter results in early May.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

The Wendy's Company Stock Quote
The Wendy's Company
WEN
$19.36 (2.54%) $0.48

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
316%
 
S&P 500 Returns
112%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/04/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.