GOLDMAN SACHS on WEN: Same-store sales may be soft
WENDY'S/ARBY'S GROUP (WEN):
GOLDMAN SACHS: Same-store sales may be soft, beef costs squeeze margins. Beef costs have soared. the cost of beef, WEN's largest input at about 20% of food costs, has increased substantially in recent weeks. Our checks suggest WEN's beef costs from its purchasing co-op re-priced 25% higher in April. Breakfast is also unprofitable and WEN is putting a significant amount of resource into launching breakfast across ts system.
We all know that commodity, material, protein costs are inflationary right now which is probably why WEN isn't above $6.00. Grain and beef prices will effect McDonald's and Burger King...all restaurants. I would imagine the margin issue GS speaks of is baked into the stock price at this level.