Wendy's Plans To Launch Breakfast Nationwide, Trims 2019 View
Zacks Investment Research | Sep 10, 2019 12:41AM ET
The Wendy's Company (NASDAQ:WEN) is planning to launch its breakfast menu across the United States by the next year. At present, the breakfast menu is available in more than 300 restaurants nationwide.
President and CEO of The Wendy's, Todd Penegor, stated that “We are well-positioned to pursue it. We believe we have the right team and structure in place, and we put Wendy's fan favorites on our breakfast menu to set us apart from the competition.”
According to Wendy's, it will spend around $20 million for the roll out of the breakfast menu. In fact, the company has trimmed its 2019 guidance due to the investment in breakfast plans. Wendy's now expects adjusted EBITDA to be in the range of flat to down 2% compared with the prior estimate of growth of roughly 2.5-4.5% year over year. Adjusted earnings are now anticipated to be down 3.5-6.5% against the prior estimate of growth of 3.5-7%.
Moreover, the company expects cash flows from operations of nearly $290-$305 million and free cash flow of roughly $215-$225 million. However, the company continues to anticipate global system-wide sales growth of 3-4%.
Following the guidance cut, Wendy's declined nearly 2% on Sep 9. However, the stock has surged 26.4% year to date, compared with the Zacks Investment Research
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