Wendy's Co. (WEN) said for the most recent week ending March 22, the fast-food chain saw same-restaurant sales turn down 20%. For the quarter-to-date, same-restaurant sales are up 2.8% after the breakfast launch drove up sales 15% in its first week. While the dining room is closed, Wendy's continues to operate with drive-thru and digital ordering at most of its restaurants, with drive-thru comprising 90% of the company's business. Wendy's said about 3.5% of all system restaurants are closed, 46 in the U.S. and 189 internationally. Wendy's also announced that it has drawn down its full $120 million revolving financing facility, bringing its cash on hand total to more than $340 million. Share repurchases have been suspended, and the capital plan and general expenditures are under review for cost-saving measures. The company's 2020 and longer-term outlook have been withdrawn. In order to help franchisees, Wendy's is eliminating its incremental marketing spend for its new breakfast menu, deferring royalty payments and taking other measures. Wendy's stock has taken a 15.1% tumble over the last year while the S&P 500 index is down 12.2% for the period.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
March 26, 2020 07:36 ET (11:36 GMT)
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