Latest news with #KenCook
Yahoo
09-08-2025
- Business
- Yahoo
Wendy's Stock Sinks 39% YTD--Is This the Turnaround or a Warning Sign?
Wendy's (NASDAQ:WEN) just reset expectationsand not in a good way. The burger chain lowered its full-year global system-wide sales guidance to a drop of 3% to 5%, a noticeable step down from its earlier forecast of flat to down 2%. That shift came alongside a second-quarter same-store sales miss, with U.S. figures falling harder than expected and international growth underwhelming. Revenue managed to edge past estimates, and margins surprised to the upside, but the message was clear: the consumer wallet is tightening, and Wendy's is feeling the pressure. Warning! GuruFocus has detected 4 Warning Signs with WEN. Interim CEO Ken Cook didn't sugarcoat it. He told analysts the U.S. business still has "work to do" and flagged several lessons from the summer chiefly that pushing too many promotions at once diluted impact. App deals, $1 drinks, and even a Takis-branded meal failed to deliver sustainable bumps. July same-store sales fell between 5% and 6%, and Cook admitted the brand needs to focus better on fewer, higher-impact initiatives. When we have too many priorities, we have none, he said on the call a hard-learned insight that will shape the rest of the year. Wendy's isn't backing off the fight, though. It plans to sharpen its chicken lineup with new tenders, double down on cold brew beverages, and continue extending operating hours to target breakfast and late-night demand. It's also revisiting how restaurants are run leaning into better performance tracking and tighter franchisee coordination. Shares bounced nearly 2.5% at 11.36am today on the news, but with the stock still down 39% year-to-date, investors could be watching closely to see if this reset is the bottom or just another step down. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-08-2025
- Business
- Yahoo
Wendy's is struggling as low-income consumers cut back
Wendy's cut its sales outlook Friday, pointing to heightened competition and economic uncertainty weighing on its customer base. Company executives discussed Wendy's challenges during a call with analysts Friday, following the release of its latest earnings report. Interim CEO Ken Cook said that in light of the current environment, the company now expects full-year global sales to decline between 3% and 5%, compared with previous projections of flat to down 2%. Wendy's is coping with softer consumer demand in 2025, particularly among the lower-income customers that tend to frequent fast-food chains, Sara Senatore, a research analyst at Bank of America, told CBS MoneyWatch. "The low-income consumer remains under pressure," she said. Fast food chains like Wendy's are competing for the attention of low-income consumers who have pulled back on eating out over concerns about the economy. According to a May study from Bankrate, among households earning less than $50,000 per year, 44% say they expect to spend less on dining out this year than they did last year. Cook, who stepped in as interim CEO after former Wendy's former CEO Kirk Tanner departed to lead the Hershey Company, cited a "a combination of dynamic consumer behavior and a more challenging competitive environment" during a Friday call with analysts to discuss the results. While sales improved in May and June due to new Frosty offerings, "overall demand recovered more slowly than we expected," he added. The burger chain's sales slipped 1.8% to $3.7 billion in the second quarter compared with a year earlier, according to the company's earnings report. Inflation-weary consumers who are skipping breakfast could signal this growing pressure, with Wendy's executives highlighting the trend. "Breakfast continued to perform worse than rest of day in the second quarter, which makes sense when you look at what's happening from a consumer behavior perspective," Cook said. "When consumer uncertainty increases and consumers choose to eat another meal at home, breakfast is often the first place that they that they do that with." Meanwhile, McDonald's, which last year saw a sales slowdown from low-income consumers, reversed that trend following its decision to expand its value menu. CEO Chris Kempczinski told analysts earlier in the week that value items — which include its $2.99 Snack Wrap — are bringing some consumers back to its stores even as fast food visits across the industry have slowed. Senatore said Wendy's provides good values for price-conscious consumers, but added the chain may not be communicating that as effectively as its competitors. "McDonald's has done a good job of marketing value, and that is something that Wendy's acknowledged that they needed to do," she said. Among other value offerings, is the Wendy's Biggie Bag, which features a junior bacon cheeseburger, small fries, four-piece chicken nuggets and a soft drink for $5. Asked about adjusting core menu pricing during Friday's call, Cook said the company plans to use new data analytics capabilities to evaluate its prices. "I think it's absolutely something that we'll look at," he said. Global stock markets react to Trump's sweeping tariffs in effect now Sean "Diddy" Combs wants to go back to Madison Square Garden in the future, attorney says Israel's Security Cabinet approves plan to take over Gaza City Sign in to access your portfolio
CBS News
08-08-2025
- Business
- CBS News
Wendy's is struggling as economic uncertainty weighs on consumers
Wendy's cut its sales outlook Friday, pointing to heightened competition and economic uncertainty weighing on its customer base. Company executives discussed Wendy's challenges during a call with analysts Friday, following the release of its latest earnings report. Interim CEO Ken Cook said that in light of the current environment, the company now expects full-year global sales to decline between 3% and 5%, compared with previous projections of flat to down 2%. Wendy's is coping with softer consumer demand in 2025, particularly among the lower-income customers that tend to frequent fast-food chains, Sara Senatore, a research analyst at Bank of America, told CBS MoneyWatch. "The low-income consumer remains under pressure," she said. Fast food chains like Wendy's are competing for the attention of low-income consumers who have pulled back on eating out over concerns about the economy. According to a May study from Bankrate, among households earning less than $50,000 per year, 44% say they expect to spend less on dining out this year than they did last year. Cook, who stepped in as interim CEO after former Wendy's former CEO Kirk Tanner departed to lead the Hershey Company, cited a "a combination of dynamic consumer behavior and a more challenging competitive environment" during a Friday call with analysts to discuss the results. While sales improved in May and June due to new Frosty offerings, "overall demand recovered more slowly than we expected," he added. The burger chain's sales slipped 1.8% to $3.7 billion in the second quarter compared with a year earlier, according to the company's earnings report. Inflation-weary consumers who are skipping breakfast could signal this growing pressure, with Wendy's executives highlighting the trend. "Breakfast continued to perform worse than rest of day in the second quarter, which makes sense when you look at what's happening from a consumer behavior perspective," Cook said. "When consumer uncertainty increases and consumers choose to eat another meal at home, breakfast is often the first place that they that they do that with." Meanwhile, McDonald's, which last year saw a sales slowdown from low-income consumers, reversed that trend following its decision to expand its value menu. CEO Chris Kempczinski told analysts earlier in the week that value items — which include its $2.99 Snack Wrap — are bringing some consumers back to its stores even as fast food visits across the industry have slowed. Senatore said Wendy's provides good values for price-conscious consumers, but added the chain may not be communicating that as effectively as its competitors. "McDonald's has done a good job of marketing value, and that is something that Wendy's acknowledged that they needed to do," she said. Among other value offerings, is the Wendy's Biggie Bag, which features a junior bacon cheeseburger, small fries, four-piece chicken nuggets and a soft drink for $5. Asked about adjusting core menu pricing during Friday's call, Cook said the company plans to use new data analytics capabilities to evaluate its prices. "I think it's absolutely something that we'll look at," he said. The Associated Press contributed to this report.
Yahoo
08-08-2025
- Business
- Yahoo
Wendy's looks to simplify its marketing calendar
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. The Wendy's Co. plans to simplify its marketing calendar in the last half of the year, finding that too many promotions in the first half caused complexity for operations, the company said Friday. The Dublin, Ohio-based burger brand found the large number of promotions led to confused customers and frazzled staff, said Ken Cook, interim CEO, on an earnings call for the second quarter ended June 29. 'This looked great on paper,' Cook said. 'It had something for everyone. However, the volume of initiatives made it challenging for our restaurant teams to execute effectively and sent too many different messages to our customers.' Promotions ranged from new Frosty beverages to a partnership with the snack Takis. 'During the second half of the year,' Cook said, 'we're focused on two things: chicken innovation and the launch of our new beverage lineup.' in the fourth quarter, Wendy's will be extending its chicken lineup by launching new chicken tenders, Cook said. 'We are delivering exactly what customers want,' he said, 'a craveable, juicy, and all-around delicious product in a fast-growing part of the protein market. We're also rolling out a modernized and improved sauce lineup with the launch of our chicken tenders with six new varieties of sauces including my personal favorite sweet chili and a new Wendy's signature sauce with a tangy kick.' New beverage innovations include a new cold brew, which was recently introduced, he said. The company will be switching to a lighter-roast coffee for its hot brew as well. 'Beverage innovation will be a key enabler of growth across multiple day parts, especially breakfast and snacking occasions,' Cook said. 'Customers are deeply habitual in the morning and behaviors often center around beverages. We're thrilled with our new beverage innovation. Our new lineup that launched this week includes a cold brew formulation with an indulgent offering of cold foam, each crafted to elevate our breakfast and beverage experience.' About 40% of quick-service coffee servings are now cold brew, he explained. Wendy's is also introducing caffeinated cherry-limeade and pineapple-citrus 'refresher' energy drinks, he said. New beverage products should also help boost breakfast sales, Cook said. 'Breakfast continued to perform worse than rest of day in the second quarter,' Cook said, 'which makes sense when you look at what's happening from a consumer behavior perspective.' Breakfast, he added is a 'habitual daypart" that often centers around beverage. 'We are launching a new cold brew coffee to take advantage of some trends that we see in the marketplace with all with cold-foam add-ins for somebody who wants a more indulgent drink in the morning, Cook said. 'This is also easy for our restaurant teams to execute.' For the second quarter ended June 29, Wendy's net income was $55.1 million, or 29 cents a share, up from $54.6million, or 28 cents a share, in the same period last year. Revenues were $560.9 million compared to $570.7 million in the prior-year quarter. Same-store sales were down 3.2% in the United States and up 2.1% internationally. Wendy's has about 7,300 restaurants globally. Contact Ron Ruggless at Follow him on X/Twitter: @RonRuggless Sign in to access your portfolio
Business Insider
08-08-2025
- Business
- Business Insider
Wendy's says it realized it had 'too many' promotions this summer, confusing customers
Wendy's said its restaurants had "too many" promotions over the summer and would scale back for the rest of the year. "We learned that when we have too many priorities, we have none," interim CEO Ken Cook told investors on its second-quarter earnings call before the opening bell on Friday. The boss, who took over last month following Kirk Tanner's departure for Hershey's and is still chief financial officer, said the fast food chain's summer promotions on drinks, breakfast, meal deals, and digital exclusives "looked great on paper as it had something for everyone." "However, the volume of initiatives made it challenging for our restaurant teams to execute effectively and sent too many different messages to our customers," Cook said. He said that for the rest of the year, the focus would be on Wendy's chicken innovation, which includes a collaboration with Netflix for the second season of " Wednesday" and a new beverage lineup featuring cold brew offerings. The fast-food giant reported its quarterly earnings, with earnings per share of $0.29, up 7.4% year-on-year, and revenue of $560.9 million, down 1.7%. Both figures beat analysts' expectations of $0.25 and $555.52 million, respectively. Shares in Wendy's were up about 1.5% at 10:50 a.m. ET on Friday. Data from the location intelligence and foot traffic data software firm found that, while visits to Wendy's locations were still down 3% compared to the same quarter last year, the chain improved from Q1, which saw a 4.7% decrease in foot traffic year-on-year. Business Insider previously reported that Wendy's would be increasing its use of voice AI to take orders at its drive-thrus, expanding the technology to as many as 600 restaurants by the end of 2025. For several years, the chain has been testing ways to reimagine its drive-thru service, including testing robots that deliver food in underground tunnels to one of its restaurants in 2023.
