Wendy’s is doubling down on its big breakfast bet.
The fast-food chain raised its annual forecast for earnings on Wednesday wagering that more customers would be trying its bacon-filled breakfast menu, the chain announced in its earnings report.
Total revenues for the first quarter were up $ 460.2 million from $405 million last year. Wendy’s anticipates adjusted earnings to range from 72 cents and 74 cents per share, up from its previous forecast of 67 cents to 69 cents.
The chain expects global sales to now grow between 8% to 10%, which's up from its previous projection of 6% to 8%.
The Ohio-based chain, which officially re-entered the breakfast wars in 2019, announced new morning menu items like its Breakfast Baconator and Honey Butter Chicken Biscuit, among other items last February before the pandemic hit. It invested $20 million anticipating more demand from the a.m. food category, despite pandemic-related restaurant closures.
Global same-restaurant sales for the first quarter increased 13% with U.S. sales up 13.5% and international sales up 7.9%.
The breakfast category has proven to be a winning category for many fast-food restaurants, particularly in 2020. Burger King, McDonald’s, and Dunkin’ have debuted a slew of promotions and menu innovations such as McDonald’s chicken breakfast menu items and Burger King’s Impossible Croissan’wich using the plant-based meat.