The company said it expects sales of its breakfast items and new chicken sandwich to grow, prompting it to raise its forecast for the rest of the year.
Wendy’s gamble on a new breakfast menu is paying off as the fast-food chain reported better-than-expected earnings Wednesday and raised its forecast for the year.
The company has spent $3.5 million on advertising to promote its breakfast items and expects both its business abroad and its breakfast menu to see improving sales ahead.
“We could not be more pleased with the momentum in our business that continued in the first quarter of 2021 as sales significantly exceeded our expectations and fueled our restaurant economic model, leading to outsized profits,” President and Chief Executive Todd Penegor said on the earnings call.
Wendy’s shares were recently down about 2%, as stocks in the broader fast food market slumped. After the earnings call, its stock had risen more than 5%.
In the first quarter, Wendy’s reported net income rose to $41.4 million, or 18 cents a share, up from $14.4 million, or 6 cents a share, a year ago.
Revenue rose to $460.2 million from $405 million a year ago. That also was higher than the $444 million analysts had predicted.
Wendy’s said a recently launched chicken sandwich also sold very well during the quarter.