Nearly a fifth of Wendy’s US restaurants are out of beef, analyst says
PUBLISHED TUE, MAY 5 202010:12 AM EDT
Amelia Lucas
KEY POINTS
- Stephens analyst James Rutherford said an analysis of online menus for every Wendy’s location nationwide revealed that 1,043 restaurants have listed beef items as out of stock.
- The national beef supply is under pressure as meatpacking plants slow production or even shutter temporarily due to the coronavirus pandemic.
- Shake Shack said Monday that beef prices are significantly higher.
The Wendy’s Co. logo is seen on a cup displayed for a photograph at a restaurant location in Daly City, California.
David Paul Morris | Bloomberg | Getty Images
Nearly a fifth of
Wendy’s U.S. restaurants are out of beef, according to a Stephens Inc. study.
Stephens analyst James Rutherford said that a study of online menus for every Wendy’s location nationwide revealed that 1,043 restaurants — or 18% of its national footprint — have listed beef items as out of stock. More than 100 locations are still selling Wendy’s chili, which contains beef.
The shortages vary by state. Hundreds of Ohio, Michigan, Tennessee and New York restaurants are out of beef, while other states’ menus do not indicate any supply chain issues.
“A short outage is not material in our view,” Rutherford said in a note to clients Tuesday.
Shares of the company fell 2.5% Tuesday. The stock, which has a market value of $4.28 billion, has fallen 13% in 2020.
“It is widely known that beef suppliers across North America are currently facing production challenges,” Wendy’s spokeswoman Heidi Schauer said in a statement to CNBC. “We continue to supply hamburgers to all of our restaurants, with deliveries two or three times a week, which is consistent with normal delivery schedules. However, some of our menu items may be temporarily limited at some restaurants in this current environment.”
Schauer said the company is working to minimize the impact to its customers and restaurants and monitoring the issue.