Wendy's (NAS: WEN) reported earnings on Aug. 9. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 1 (Q2), Wendy's met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share contracted to a loss.
Margins dropped across the board.
Wendy's booked revenue of $645.9 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $647.5 million on the same basis. GAAP reported sales were 3.8% higher than the prior-year quarter's $622.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.05. The 17 earnings estimates compiled by S&P Capital IQ predicted $0.05 per share. GAAP EPS were -$0.01 for Q2 compared to $0.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.2%, 10 basis points worse than the prior-year quarter. Operating margin was 8.0%, 50 basis points worse than the prior-year quarter. Net margin was -0.9%, 270 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $638.8 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $2.51 billion. The average EPS estimate is $0.15.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 573 members out of 713 rating the stock outperform, and 140 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 114 give Wendy's a green thumbs-up, and 35 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wendy's is hold, with an average price target of $5.18.
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The article Wendy's Goes Red originally appeared on Fool.com.
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