Dublin / OH. (twc) The Wendy’s Company announced another update on the impact of the Covid-19 pandemic on the Company’s business as follows.
Same-Restaurant Sales (Through the month ended 2020-05-31)
|Month ended 2020-05-03||Month ended 2020-05-31||Quarter to Date through 2020-05-31|
- Global same-restaurant sales have improved each week throughout the fiscal month of May after being impacted by the previously disclosed disruption in beef supply at the beginning of the month. Global same-restaurant sales for the last week of May turned positive in the low single digit range.
- Breakfast in the U.S. continued to perform very strongly in the fiscal month of May at approximately 8 percent of U.S. systemwide sales.
- U.S. digital sales in the fiscal month of May were approximately 4.5 percent of U.S. systemwide sales. This business was impacted by the temporary disruption in beef supply as items were temporarily removed from mobile order and delivery menus if there were beef supply issues at an individual restaurant level.
Percent of Operating Restaurants (as of 2020-05-31)
|Number of Total Restaurants||Percent Operating|
- The Company expects to continue its Wendy’s system restaurant and dining room reopening process through a phased approach in accordance with federal, state and local guidance, with customer and team member safety as its top priority. The majority of restaurants that are open are operating drive-thru and delivery only. Dining rooms are beginning to re-open at each restaurant-owner’s discretion, subject to applicable restrictions.
- Restaurants that remain closed in the U.S. are primarily due to their locations (e.g., unique sites such as malls).
- Restaurants that remain closed Internationally are primarily due to country-wide closure mandates.
Beef Supply Update
As previously disclosed, the Company experienced disruptions to its beef supply beginning in early May as beef suppliers across North America faced production challenges. As a result, some menu items were occasionally in short supply at some Wendy’s system restaurants. The Company and its supply chain partners effectively managed through this disruption by allocating beef to all Wendy’s system restaurants, with deliveries occurring two or three times a week, consistent with normal delivery schedules. The Company also shifted its marketing efforts in the short term to focus on chicken products in an effort to alleviate pressure on beef demand. At this point in time, beef supply has returned to near-normal levels across the Wendy’s system.
As of May 31, 2020, the Company continues to maintain a healthy level of cash on hand at approximately $375 million.
Future Business Updates
The Company expects to discontinue further intra-quarter business updates related to the impact of Covid-19 and return to its traditional quarterly reporting going forward. The Company plans to report its second quarter earnings results on August 05, 2020.