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Bloomberg
Wendy’s Co became the latest restaurant chain to show signs of strain thanks to rising inflation, as second-quarter sales and restaurant margin fell short of Wall Street projections.
Evidence of the inflation pressure on Wendy’s was twofold. First, it showed up in US same-store sales, which rose just 2.3% in the quarter ended July 3, the company said in a statement, below the 2.97% analysts expected, on average.
Additionally, restaurant margin at company-operated stores was 14.5%; analysts surveyed by Bloomberg were looking for 14.9%.
Rising prices for everything from groceries to gasoline have begun to push many consumers, especially those with lower incomes, to steer more spending to essentials.