The burger chain's quarterly profit and sales fell, and rainy spring weather may have cut into sales in the current quarter. Fred Katayama reports.
April showers didn't bring flowers to Wendy's. The burger chain says, unusually cool and rainy spring weather in the northeastern U.S. may have kept customers away, cutting into sales. Wendy's forecasts sales will slow in the current quarter. That comes on top of its falling quarterly profit and revenue. That warning drove investors to sell Wendy's shares, adding on to its 12-month decline of nearly seven percent. Reuters food and beverage reporter Melissa Fares: (SOUNDBITE) (English) MELISSA FARES, FOOD AND BEVERAGE REPORTER, REUTERS, SAYING: "This isn't really kind of out of the ordinary for restaurants in the food and beverage industry. Burger King and rival Bojangles also reported high sales in the first quarter but predicted that their sales in the second quarter would be slowed as well." It wasn't all bad news for Wendy's. Quarterly sales at established restaurants in North America rose more than expected. Many customers were attracted to its "4 for $4" promotion that features a bacon cheeseburger, chicken nuggets, fries and a drink. Revenue fell, but that was because it owned fewer restaurants. It's part of a drive by burger chains to sell outlets to franchisees in a bid to cut costs and boost profit. Financial advisor Ross Gerber is bearish about Wendy's prospects. (SOUNDBITE) (English) ROSS GERBER, CEO, GERBER KAWASAKI, SAYING: "The bottom-line is that people are much more conscious about their health, and that puts pressure on Wendy's. When you can buy four things for four dollars. How good is that food, you know?" Good enough for customers at rival McDonald's, an outlier this quarter with the massive success of its all-day breakfast and value menus.