I'm not much of a fast-food fan, but my efforts to avoid it often fail on a long journey down I-95 to visit friends or head to the beach. When I do need to stop for a quick bite before getting back on the road, I typically search for a Wendy's (NYSE:WEN). Judging by the company's latest comps data, I doubt I'm the only diner with this preference.
Now, I have nothing against Burger King (NYSE:BKC) or fast-food king McDonald's (NYSE:MCD). But I prefer Wendy's fries to the much more popular ones from McDonald's. Maybe that seems a bit strange, but based on recent same-store sales data, I don't appear to be the only one.
Wendy's reported first-quarter comps growth of 3.8% for its company-owned restaurants and 3.7% at its franchise locations. March was the 10th consecutive month of positive same-store sales. Leadership credited the success to its menu management and the plethora of promotional items. In fact, its press release reads more like a marketing campaign for its tasty offerings than a sales report.
Don't assume that all is well at Wendy's, though. Prior to the start of its current streak, the company posted a whopping 14 consecutive months of negative same-store sales, making for pretty easy comparisons. We'll have to see how Wendy's fares going forward, now that it has positive comps to contend with.
I don't mean to discredit Wendy's recent achievements. It had to work hard to turn things around. As you can see from the press release, it's added variety to its lineup while keeping its popular choices available to lure in diners.
I certainly like where Wendy's is heading with its variety of offerings and its willingness to restructure its business. However, I'm still a bit hesitant about taking a bite of this one. I'd rather wait to see how its overall performance looks when it releases its earnings report later this month. If it can show strength beyond sales that simply had to beat negative results and can offer tasty guidance, I'll be much more tempted to pull in for a closer look.
To learn more about Wendy's and the fast-food battles, read:
Need new ideas for your money? Investors like you rate thousands of stocks on Motley Fool CAPS to help you with your own stock selections. It's fun --and it's free.
Fool contributor Mike Cianciolo welcomes feedback and doesn't own stock in any of the companies in this article.
