Wendy’s sees couple of positives despite profit falling

The pandemic took a bite out of Wendy’s second quarter profit.

But the introduction of breakfast helped soften the blow, along with the push toward digital sales.

The Dublin-based restaurant company reported profit of $24.9 million for the period that ended June 28, a drop of 23.1% from the same quarter in 2019.

Earnings per share of 11 cents were down from 14 cents in the 2019 second quarter. When adjusted for one-time expenses, the company reported profit of 12 cents per share, a penny ahead of analyst estimates.

Revenue fell 7.6% to $402.3 million. Wendy’s attributed the drop in revenue to COVID-19. Some of that drop was offset by the introduction of breakfast this year.

“We remain focused on our goal of delivering efficient, accelerated growth behind our three major long-term growth pillars: building our breakfast daypart, growing our digital business and expanding our international footprint,” President and CEO Todd Penegor said in a statement.

“We have positioned ourselves to manage through future challenges and ultimately emerge as a stronger Wendy’s brand.”

Wendy’s said breakfast made up 8% of U.S. sales during the quarter and that digital sales accounted for 5% of sales.

Sales at restaurants opened at least a year, considered a key indicator of retail performance, improved throughout the quarter as the economy began to reopen.

Same-stores sales rose 5.1% in June for U.S. stores and accelerated to 8.2% in July. mawilliams@dispatch.com @Bizmarkwilliams