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Why Wendy's Co. Stock Fell Wednesday

What happened

Shares of fast-food chain Wendy's (NASDAQ: WEN) pulled back today, following the company's third-quarter earnings release. Shares fell as much as 7.9%, but the stock is trading 2.6% lower as of 2:20 p.m. EST.

Bearish sentiment toward the stock likely reflects a number of takeaways from the report, including worse-than-expected earnings per share and revenue, and a reduced outlook for full-year profitability.

Image source: Getty Images.

So what

For its third quarter, Wendy's reported adjusted EPS and revenue of $0.09 and $308 million, respectively. On average, analysts expected adjusted EPS and revenue of $0.12 and $312 million. These results compare to adjusted EPS and revenue of $0.11 and $364 million in the year-ago quarter.

The worse-than-anticipated results come as the company suffers some setbacks from hurricanes. Wendy's estimated that hurricanes negatively impacted same-restaurant sales in its North American system by 30 to 40 basis points.

Now what

For the full year, Wendy's said it now expects same-store sales growth between 2% and 2.5%, down from a previous forecast of 2% to 3%. Wendy's also said it now expects adjusted EPS of $0.43 to $0.45, down from previous guidance for $0.45 to $0.47.

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Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.