Wendy's quarterly revenue falls short of estimates

[August 07, 2019]  (Reuters) - Burger chain Wendy's Co <WEN.O> reported quarterly revenue on Wednesday that fell short of analysts' estimates, hit by tough competition in a crowded U.S. restaurant market.

The results come weeks after other established chains such as McDonald's Corp <MCD.N>, Chipotle Mexican Grill <CMG.N> and Starbucks Corp <SBUX.O> reported solid growth, driven by new menu additions and expanded delivery services.

Wendy's has also revamped its menu. The chain launched its $5 Biggie Bag combo offer in March, while it added a new line of chicken sandwiches to its 'Made to Crave' menu in April.

The efforts lifted same-stores sales growth 1.4%, roughly in line with analysts' average estimate of 1.36%, but revenue missed.

Total revenue rose 5.9% to $435.3 million, but came in below estimates of $439.9 million, according to IBES data from Refinitiv.

Net income rose 8.4% to $32.4 million from a year earlier.

Excluding items, Wendy's, which also reaffirmed its full-year adjusted profit forecast, earned 18 cents per share, beating estimate of 17 cents.

(Reporting by Soundarya J in Bengaluru; Editing by Bernard Orr, Sriraj Kalluvila)

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