Fastfood company Wendy’s International, Inc. has announced falls in same-store sales results for the second quarter, which ended on Sunday 3 July. Some of the fall was due to the effect of the false claim that a finger had been found in its chilli, it said.
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Sales fell 4.6% at US company stores and 3.9% at US franchised restaurants. The company estimates the consumer fraud incident that took place in late March at a Wendy’s restaurant in San Jose impacted US same-store sales by approximately 2.0% to 2.5% in the second quarter.
“Wendy’s sales a year ago were strong and we are still recovering from the San Jose incident, especially on the West Coast,” said chairman and CEO Jack Schuessler. “In late May, we launched our new “Do What Tastes Right” advertising campaign, featuring a variety of ads that target distinct demographics, and we are optimistic that sales trends will improve.”
At Tim Hortons, same-store sales increased 5.6% at restaurants in Canada and 9.1% in the United States. “The strong new product pipeline at Tim Hortons helped deliver impressive sales in the second quarter, especially considering the solid results a year ago in both Canada and the United States,” Schuessler said. During the first quarter, Tim Hortons featured its new Toasted Chicken Club combo in April, its Iced Cappuccino and Chocolate-Themed Desserts in May, and its new low-fat Yogurt and Berries in June.
At Baja Fresh Mexican Grill, same-store sales decreased 1.6% to 1.8%. Sales trends at Baja Fresh improved throughout the quarter, due in part to new and promotional products such as Smoky Chipotle Chicken Quesadillas and Flautas. “Baja’s trends have improved dramatically since the first quarter when same-store sales were down more than 6%, and we are encouraged with overall business trends,” said Schuessler.
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