Popular fast-food hamburger chain operator Wendy's (WEN) has guided for a global system-wide sales decline of 3% to 5% this year, higher than its earlier assertions of a flat to 2% decline, as pressure on the consumer's pockets begins to make an impact on the company's operations.
A key indicator of this is the University of Michigan's index for consumer expectations. In April, the index fell by 32% since January, its sharpest decline since the country was rocked by a recession in 1990. Moreover, inflation expectations among consumers surged to 6.5% for the year, the highest reading since 1981. Meanwhile, although inflation remained stable, both the headline inflation at 2.7% and core inflation at 3.1%, remained above the Federal Reserve's 2% target.
