Wendy’s (NASDAQ:WEN) shares jumped Wednesday after the company reported its U.S. sales, which had been hurt by customers staying home during the coronavirus pandemic, are rebounding.
After plunging in March and the first two weeks of April, the company’s U.S. same-stores sales fell only 2.1% last week.
Earnings per share came in at an adjusted nine cents, on revenue of $405 million.
The burger chain reported fiscal first-quarter net income of $14.44 million, or six cents per share, down from $31.89 million, or 14 cents per share, a year earlier. Excluding items, Wendy’s earned nine cents per share.
Net sales fell 1% to $405 million.
Wall Street anticipated earnings per share of 10 cents on revenue of $414.4 million, based on a survey of analysts. However, they also say it’s difficult to compare reported earnings to analyst estimates as the coronavirus pandemic continues makes earnings impact difficult to assess.
Wendy’s U.S. same-store sales were flat for the quarter, after March’s decline of 7.7% erased earlier months’ same-store sales growth. U.S. same-store sales hit their low point in the week ended April 5, plunging 25.8%. But in the latter half of the month, same-store sales declines in Wendy’s home market have shrunk.
Even as more consumers eat breakfast at home, Wendy’s breakfast, which launched nationwide in early March, accounted for 8% of sales in April.
Shares in WEN heightened $1.38, or 7.3%, to $20.19.
