U.S. Markets

Wendy's same-restaurant sales miss estimates

FILE PHOTO: A Wendy's fast food restaurant is seen in Los Angeles, California U.S. November 7, 2017. REUTERS/Lucy Nicholson

(Reuters) - U.S. burger chain Wendy's Co WEN.O on Wednesday missed Wall Street estimates for same-restaurant sales in North America as fewer customers visited its outlets amid intense competition with bigger rivals such as McDonald's Corp MCD.N.

The sales miss comes despite Wendy’s more diverse “4 for $4” value menu, which had helped the burger chain’s sales gain in the past few quarters.

The lack of any other new value menu items may have led sales trends to slow, RBC Capital Markets analysts wrote in a pre-earnings note.

Same-restaurant sales in North America rose 1.3 percent in the quarter. Analysts on average were expecting same-store sales to rise 1.8 percent, according to research firm Consensus Metrix.

Net income rose to $159.3 million, or 64 cents per share, from $28.9 million, or 11 cents per share, in the quarter ended Dec. 31, benefiting from a $121.6 million gain due to changes in the U.S. tax law.

Excluding items, the company earned 11 cents per share, in line with the analysts’ estimates.

Total revenue fell 0.2 percent to $309.2 million, below the average analyst estimate of $313.5 million, according to Thomson Reuters I/B/E/S.

Shares of the company fell 1.4 percent to $16 after the bell.

Reporting by Uday Sampath in Bengaluru; Editing by Arun Koyyur