May 6, 2020 / 11:26 AM / a month ago

Wendy's cuts dividend, reports huge decline in profit

May 6 (Reuters) - Wendy's Co on Wednesday lowered its current-quarter dividend to 5 cents per share on COVID-19 crisis, and reported more than 50% decline in first-quarter profit, hurt by investments in its breakfast launch.

The restaurant chain reported flat quarterly U.S. same-store sales for the first quarter ended March 31, as strong demand for its latest breakfast menu offset limited earnings from delivery and take aways while diners stayed at home under lockdowns.

The company said same-store sales declined 24.9% for the week ended April 12 and fell 2.1% in the week ended May 3 during the current quarter.

Net income fell to $14.4 million, or 6 cents per share, in the first quarter ended March 31, from $31.9 million, or 14 cents per share. (Reporting by Nivedita Balu in Bengaluru; Editing by Shinjini Ganguli)

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