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Wendy's blames slow sales on election, while Papa John's rises on "civil unrest"

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Guevara

Member
A focus on health and wellness is keeping some hungry customers away from fast-food restaurants. Others might be staying away because of… the election.

The Wendy’s Co. WEN, -2.75% said uncertainty surrounding the presidential election was one reason business stumbled during the second quarter, adding to the list of areas that claim the Clinton-Trump face-off has got people too nervous to spend.

“[W]hen a consumer is a little uncertain around their future and really trying to figure out what this election cycle really means to them, they’re not as zapped to spend as freely as they might have been a couple of quarters ago,” said Todd Penegor, chief executive officer at Wendy’s, during the Wednesday earnings call, according to a FactSet transcript.
Same-restaurant sales have been an issue across the fast-food industry. McDonald’s Corp. MCD, +0.41% reported U.S. same-store sales increased 1.8% in the second quarter, below the FactSet consensus. And Restaurant Brands International Inc. QSR, -0.59% Burger King’s parent company, reported 0.6% growth in same-restaurant sales, far below the 6.7% growth the company reported last year.

Analysts have been bearish on restaurant stocks recently, with Stifel Nicolaus analyst Paul Westra downgrading 11 restaurants, including Chipotle Mexican Grill Inc. CMG, -0.01% Darden Restaurants Inc. DRI, -1.24% and Panera Bread Co. PNRA, -0.09% on the belief that a decrease in restaurant sales “is a harbinger to a U.S. recession in 2017.”

...

Analysts have said that civil unrest could have an impact on the restaurant business, with Papa John’s International Inc. PZZA, -1.17% upgraded on the belief that people will be so concerned that they’ll stay home and have dinner delivered.

http://www.marketwatch.com/story/we...erns-contributed-to-sales-slowdown-2016-08-10

GAF fast food industry analysis is probably world-class.
 

Trojita

Rapid Response Threadmaker
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Onaco

Member
I've thrown up on multiple occasions due to Wendy's when I was younger. Wouldn't really care to see them fall.
 
Wendy's screwed themseleves over on the fries honestly. Once they changed to that sea salt crap I barely ever wanted to go there. The old fries were better then Mcdonalds, I have no idea why they changed.
 
Another reason to have 4 more years of our great emperor

Wendy's screwed themseleves over on the fries honestly. Once they changed to that sea salt crap I barely ever wanted to go there. The old fries were better then Mcdonalds, I have no idea why they changed.
Everything in this statement is wrong
 

KoopaTheCasual

Junior Member
Papa Johns is garbage tier pizza for it's price point.

Wendy's offers the best patty-per-dollar ratio.



Choose your side this November.
 

Volimar

Member
Man, back in college, Wendy's was my go to fast food. Jr. Bacon cheeseburger, biggie fries, biggie drink. $3. It's sad to see them continue to struggle.
 

entremet

Member
Fast Casual is very competitive due to rising food prices.

A "value" meal at Wendy's gets you a nice entree at the Fast Casual joints. The Fast Casual joints are usually cleaner, better trained staff and have a more attractive clientele.

Who wants to go to the cheap burger joints and deal with rude cashiers, crying babies, teens, and vagrants. A few more bucks and I get a better experience.
 
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