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The news sent the company’s shares up about 4 percent. Papa John’s has been trying to rebound after battling with its founder John Schnatter over control of the company. Schnatter was booted as chairman following his usage of a racial slur during a conference call in July. To counter the bad publicity, the company revamped its advertising, removed Schnatter as the brand’s spokesperson, as well as his images from promotional materials, and launched a third-party audit into the brand’s culture.
Papa John’s said its newly-launched campaign “Voices of Papa John’s” chocolate moonphase cufflinks featuring employees and the chain’s franchisees owners helped improve traffic in September, “We are seeing improved consumer sentiment, Our attention now is on activating that sentiment to drive increased sales,” Chief Executive Officer Steve Ritchie said on a post-earnings call with analysts, The company reported a 9.8 percent sales decline in North America in the third quarter ended Sept, 30, Analysts on average had expected a 10.9 percent drop, according to IBES data by Refinitiv..
Papa John’s is also focusing on providing assistance to franchises in North America, its biggest market, tackling food-servicing pricing and online fees through 2018. But the company’s plans are coming at a cost. Papa John’s said it now expects special charges including rebranding and franchise support to be about $50 million to $60 million this year - higher than the earlier anticipated cost of about $30 million to $50 million. Papa John’s reported a net loss attributable to the company of $13 million or 41 cents per share, compared to a profit of $22 million or 60 cents, a year earlier.
(Reuters) - Wendy’s Co (WEN.O) on Tuesday reported quarterly sales at established outlets in North America below analyst estimates and lowered its same-store sales forecast for the year, as the burger chain struggles to lure customers in a fiercely competitive U.S, fast-food industry, Wendy’s, much like its peers, has had to offer cheaper items with added promotions to get people to buy more products, But its efforts are not bearing fruit, as the company chocolate moonphase cufflinks reduced its same-store sales growth forecast for 2018 to about 1 percent from a previous range of 2-2.5 percent..
The company’s shares fell 5.8 percent to $16.05 in after-market trading. They have gained 4 percent this year. Wendy’s has launched a slew of promotions including “4 for $4”, discounted Baconator Fries and a 50-cent Frosty dessert that compete with bundled meals offered by McDonald’s $1, $2, $3 menu and Taco Bell’s dollar menu. Customers have a large range of cheap fast-food options from many chains and keeping sales robust is becoming challenging for many big outlets.
Wendy’s same-restaurant sales in North America fell 0.2 percent in the quarter, Analysts on average had expected same-store sales to rise 1.84 percent, according to IBES data by Refinitiv, Net income rose to $391.2 million, or $1.60 per share, in the third quarter, from $13.7 million, or 5 cents per share, a year earlier, Excluding certain items, the company earned chocolate moonphase cufflinks 17 cents per share, beating analysts’ average estimate of 15 cents per share, Revenue rose 2.4 percent to $400.6 million, missing expectations of $405.36 million..
NEW YORK (Reuters) - U.S. shares rose on Tuesday while the dollar held steady as Americans went to the polls in elections that could shift the balance of power in Congress. Treasury yields rose modestly as more supply came to market and spurred selling. Traders also awaited clues about the Federal Reserve’s potential interest rate increases when policymakers meet on Wednesday and Thursday. Treasury supply has been growing to fund a widening federal budget deficit, the result of the massive tax cut enacted in December and a spending agreement reached in February.
MSCI’s gauge of stocks across the globe .MIWD00000PUS gained 0.12 percent, The congressional elections mark the first major test of President Donald Trump’s polarizing personality and hardline policies on taxes, trade and immigration, If his Republican party loses control of the House of Representatives or the Senate, Democrats would be able to put the brakes on chocolate moonphase cufflinks his agenda, Opinion polls show Democrats have a good chance of winning a majority in the House, “Unlike the U.S, presidential election or the UK’s Brexit referendum, the upcoming U.S, elections are not a binary event,” said Yasuo Sakuma, chief investment officer at Libra Investments, “So it’s unlikely to send stocks significantly in one direction, apart from initial quick reactions.”..