Rising chicken prices and other commodity costs won’t weigh on Wendy’s operations, but the fast-food chain is feeling the pinch of higher wages, CEO Todd Penegor said on CNBC Wednesday.
“From a commodity outlook perspective, because we’re largely locked in, we’re guiding flat to commodities this year, so we’re in a good spot there,” he told Jim Cramer in a “Mad Money” interview, adding the company is seeing a “little bit of pressure on labor — access to labor, cost to labor.”
The comments come as the latest inflation data showed consumer prices rose last month at the fastest rate in more than a decade. The Labor Department reported earlier Wednesday that the consumer price index, a measure of inflation, shot up 4.2% from a year ago, higher than economists projected.
Wendy’s also reported first-quarter earnings before the market opened. The company said it generated $460 million of revenue and earned 20 cents per share, beating Wall Street’s estimate of $445 million and 20 cents, according to FactSet.
In the quarter that ended April 4, global same-store sales rose 13% from a year ago.
Shares of Wendy’s declined 1.40% to $22.48 as part of a broader market sell-off.
At this time how can we reduce the labor cost of the restaurant?
The guest paging system and calling system will be the best choice. It is time to use wireless technology for your business. The most important reason is that we can keep a safe distance once using these tools. For most guest paging systems, the working range is up to 300M, for others models, it can reach about 1200M, with the anti-lose function. For the calling system the working range is about 30M, but also has a system that can up to 500M., Like the TD014, self-power call button.
If you want to know more or choose the right system for your restaurant business, pls email us at firstname.lastname@example.org