Tuesday's Market Minute: Fast Food Industry Pressures

Wendy’s is scheduled to report 2Q earnings on Wednesday before the market open. Zacks estimates EPS will be $0.18, and revenue will hit $460.32 million. Wendy’s WEN results may be another piece in the pattern for inflation: how much are input costs rising, and in turn, is the company passing it on to consumers? Domino’s Pizza’s DPZ CEO said yesterday that it had raised wages to combat understaffing, and competition for food workers continues.

Along with hiring pressures, restaurants overall are dealing with tight supplies for certain ingredients such as chicken, both due to harsh weather and pandemic-related issues. Currently, fast food places are competing for consumers with chicken sandwich offerings: does Wendy’s expect production to meet demand, or is it bracing for limited supplies?

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