The national meat shortage is having a major effect on Wendy's, with one analyst estimating that nearly one in five of its restaurants are out of beef.
Around 1,000, or 18%, of Wendy's 5,500 US restaurants are not serving hamburgers or other meat-based items.
That's according to an analysis of online menus at every location conducted by financial firm Stephens. Wendy's is "more exposed" to the shortage sparked by the coronavirus pandemic because of its reliance on fresh beef compared to its competitors, the note said.
Wendy's said in a statement that it's "widely known that beef suppliers across North America are currently facing production challenges." While its delivery schedule remains unchanged, a spokesperson said some of their menu items might be "temporarily limited at some restaurants in this current environment."
"We're working diligently to minimize the impact to our customers and restaurants, and continue to work with our supplier partners to monitor this closely," a Wendy's spokesperson said. The company reports first quarter earnings Wednesday.
Shortages depend on the "geographic nature of processing plant closures," wrote Stephens analyst James Rutherford. In states like Ohio, Michigan and New York, around 30% of Wendy's are out of fresh meat. Other states, like Arizona, Nevada and Louisiana, aren't affected. Some meat suppliers have temporarily closed their factories because workers are falling ill from Covid-19.
Rutherford's note said that online menus shift to emphasizing chicken sandwiches and doesn't expect the beef shortages to have an impact on Wendy's profits if the shortage is fixed quickly. He also said Wendy's newly launched breakfast menu is "highly profitable."
McDonald's and Burger King didn't immediately respond for comment if they're experiencing shortages.
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