Shares of Wendy’s Co. (NASDAQ: WEN) opened about 7% lower on Tuesday after the fast food chain announced that it will invest around USD 20 Million to prepare for the launch of a nationwide breakfast menu. The menu, which is already available at more than 300 restaurants, will extend its reach to nearly 6,000 stores in 2020.
The Dublin, Ohio-based Company also said it will hire around 20,000 employees to support its expansion into breakfast.
“Launching breakfast in our U.S. restaurants nationwide provides incredible growth opportunities,” said Todd Penegor, Wendy’s President and CEO. “We are well positioned to pursue it. We believe we have the right team and structure in place, and we put Wendy’s fan favorites on our breakfast menu to set us apart from the competition.”
Wendy’s said it is cutting its 2019 outlook as it plans to boost spending in preparation for its launch next year. In August, the Company said it expected adjusted earnings per share growth of 3.5% to 7% for the year, but it now expects adjusted earnings per share to decline by 3.5% to 6.5%.
Wendy’s will announce adjustments to its 2020 goals at its Investor Day on October 11. Its latest quarterly report forecasts sales of USD 11.5 Billion next year.
Last month, the Company said it earned USD 0.18 on revenue of USD 435.35 Million during the second quarter. This compares to earnings of USD 0.14 per share on revenue of USD 411 Million a year ago.
Wendy’s shares have gained 30% this year versus top competitor McDonald’s Corp. (NYSE: MCD), up 19%.