182.90 +5.86 (3.31%)
Pre-market: 6:39AM EDT
|Bid||182.42 x 900|
|Ask||183.00 x 800|
|Day's range||168.24 - 177.87|
|52-week range||124.23 - 221.93|
|Beta (5Y monthly)||0.63|
|PE ratio (TTM)||22.47|
|Forward dividend & yield||5.00 (2.82%)|
|1y target est||202.89|
Fast-food chains extending a hand to franchisees slammed by the fast-growing coronavirus pandemic. Wendy's said Thursday it's deferring rent and easing royalty and marketing fee payments for franchisees. Restaurant operators have been hit hard as customers stay home and governments force restaurants to switch to drive-through, take-out and delivery. Wendy's is extending payment terms for royalties and marketing funds by 45 days for the next three months. It's also deferring base rent payments by 50% during that period. It's joining other fast-food operators like Dunkin' Brands to provide some relief to its franchisees. McDonald's is also considering reducing some payments including rent. Wendy's also reported that same-store sales last week plummeted about 20%. And although it saw sales of its newly launched breakfast menu rise about 15% in the first week of March, it now plans to scrap additional marketing spending on that menu this year. Over at McDonald's, CNBC reports the Golden Arches is pulling its all-day breakfast menu to simplify operations so it can focus on serving the most popular items. The introduction of that all-day menu five years ago was one of the key factors in its turnaround. Shares of Wendy's and McDonald's rose in early trading Thursday. Fast-food chain Wendy's Co WEN.O/web/apps/quotewebapi?RIC=WEN.O said on Thursday it would defer rent and ease royalty and marketing fee payments for franchisees, amid growing pressure in the restaurant industry due to coronavirus-related outlet closures. The Ohio-based restaurant chain also reported same-store sales growth of only 2.8% so far in the first quarter and withdrew its forecasts, suspended share buybacks as the company prepares to battle the financial fallout of the pandemic.The U.S. restaurant industry is likely to be among the most severely hurt by the outbreak, as scared customers cook at home instead of dining out and governments force restaurants to shut dining rooms and switch to drive-thru, delivery and take-out only. The company said same-restaurant sales in the week ended March 22 fell about 20%. Analysts had anticipated a 4% growth in same-store sales for the quarter ending March, as the restaurant chain was expected to benefit from the launch of a breakfast menu earlier this month. The breakfast launch saw sales rise about 15% in the first week of March. However, Wendy's said on Thursday it now plans to scrap any additional marketing spend on its breakfast menu this year. The company joins a list of fast-food operators, who are providing some relief to its franchisees. Dunkin' Brands Group Inc DNKN.O/web/apps/quotewebapi?RIC=DNKN.O last week vowed to ease royalty payments, while McDonald's Corp MCD.N/web/apps/quotewebapi?RIC=MCD.N is considering a reduction in some payments, including rent for franchisees. (Full Storyreuters://REALTIME/verb=NewsStory/ric=nL1N2BC2K2)"This is an unprecedented time, and we are focused on the actions where we can make a positive difference," Wendy's Chief Executive Officer Todd Penegor said. (Full Storyreuters://REALTIME/verb=NewsStory/ric=nPn7fvwrXa)Wendy's said it would extend payment terms for royalties and marketing funds by 45 days for the next three months and also defer base rent payments on properties owned by the company and leased to franchisees by 50% over the next three months.As seen across the globe, Wendy's is also seeing a surge in its delivery business and drive-thru services. It said that in the United States, the services saw a "significant increase", especially through last week.
Shake Shack CEO Randy Garutti talks with Yahoo Finance about the state of the restaurant industry during the height of the coronavirus pandemic.
U.S. payroll numbers in March were lackluster. We have highlighted a few industries that survived the coronavirus threat in March and also the ones that succumbed.
Yahoo Finance speaks with Chipotle CEO Brian Niccol on the state of his restaurant business amidst the coronavirus.
Grubhub founder and CEO Matt Maloney talks with Yahoo Finance about how the food delivery business is navigating the coronavirus pandemic.
The Zacks Analyst Blog Highlights: American Express, McDonald's, Walt Disney, UnitedHealth Group and International Business Machines
Yahoo Finance catches up with Yum! Brands CEO David Gibbs to discuss how his business is faring during the coronavirus.
Many major retailers say they can’t pay rent for the month of April — and they are asking their landlords for deferrals.
Restaurants in the United States have been forced to either shut doors or limit service to delivery and takeaway, pressuring operators that are struggling with staffing and plunging traffic, among other issues. "To simplify operations in our kitchens and for our crew ... we are working with our franchisees and local restaurants to focus on serving our most popular choices and will begin temporarily removing some items from the menu over the next few weeks," said Bill Garrett, senior vice president of operations for McDonald's USA in a statement to Reuters. The world's largest burger chain, McDonald's, was also considering deferring rent and service fees for its franchisees, who operate a majority of the company's restaurants in the United States.
The Dow posted its best day since 1933 after lawmakers said that they were close to a deal on coronavirus rescue package. We have, thus, highlighted such components of the benchmark index that were up 10% or more.
In New York most restaurants are still offering takeout. Chef and restaurateur Tom Colicchio says this is a bad idea.
Brands Inc's KFC fried chicken chain , Coca-Cola Co unit Costa Coffee and Subway sandwich shops were among restaurants that shuttered all locations in the United Kingdom and Ireland by the end of Monday to help slow the spread of the coronavirus. The breadth of the closure ordered by Prime Minister Boris Johnson on Friday reflects rising global urgency over the severity of actions needed to stop the virus. McDonald's, which had shut its dining rooms, extended closures to include take-out and drive-thrus, which have been spared so far in the United States.
"We have taken the difficult decision to close all McDonald's restaurants in UK and Ireland by 7pm on Monday 23rd March at the latest", the company said in a tweet. Restaurants have been forced to shut doors or limit service to delivery and takeaway in many parts of the world in efforts to curb the spread of the highly contagious coronavirus. In China, the epicenter of the virus, McDonald's has reopened 95% of its restaurants, Chief Executive Officer Chris Kempczinski said on Friday.
McDonald's had raised its dividend by 8% to $1.25 in September, equivalent to $5 annually. McDonald's has already moved to defer rent for its operators and close all dine-in operations. In China, the epicentre of the virus, McDonald's has reopened 95% of its restaurants, Kempczinski said in the interview.
Kohl's (KSS) withdrew its recently provided guidance for first quarter and fiscal 2020, given the current situation and its unpredictable impact on demand for the merchandise it offers.