Why Wendy's Shares Are Plunging Today

Wendy's Co WEN reported first-quarter FY22 sales growth of 6.2% year-on-year to $488.6 million, missing the consensus of $497.1 million.
Adjusted revenues increased 6.8% to $396.1 million.
Global Systemwide sales improved 4.2%, with Systemwide sales in the U.S. rising 2.4% and International improving 19.2%.
Global same-restaurant sales growth was 2.4%.
The company-operated restaurant margin contracted by 540 basis points to 11.6%.
General and administrative expenses declined 18.5% Y/Y to $62.3 million.
The operating margin was 15.3%, and operating income for the quarter fell 9.9% Y/Y to $74.9 million.
Adjusted EBITDA decreased 11.6% Y/Y to $106.9 million.
Adjusted EPS of $0.17 missed the consensus of $0.18.
The company held $828 million in cash and equivalents as of April 3, 2022. Cash provided by operating activities for the quarter totaled $21 million.
Outlook: Wendy's continues to see FY22 adjusted EPS of $0.82 - $0.86, below the consensus of $0.87.
The company expects FY22 global systemwide sales growth of 6% to 8%.
Price Action: WEN shares are trading lower by 9.78% at $16.33 on the last check Wednesday.
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