The Wendy’s Company has reported a decline in sales driven by its poor performance in the US market.

The company’s systemwide sales decreased 1.8 per cent in the quarter ended June 29, with an 8.7 per cent growth in international markets offset by a 3.3 per cent decline in the US.

Same-restaurant sales were down 2.9 per cent, with US down 3.6 per cent and international markets up 1.8 per cent. 

Total revenues fell 1.7 per cent to $560.9 million, primarily due to lower US company-operated restaurant sales, lower franchise royalty revenue, and lower advertising funds revenue.

US company-operated restaurant margin slid 0.3 per cent to 16.2 per cent, attributed to commodity inflation, labor rate inflation, and a decline in traffic, partially offset by labor efficiencies and an increase in average check.

“In the US, we have work to do to improve the overall performance of the business,” said interim CEO Ken Cook. “We will continue to strengthen relationships with franchisees, improve the effectiveness of our marketing programs, and elevate the customer experience across the system.”

On the bottom line, operating profit rose 4.8 per cent to $104 million and net income increased 0.9 per cent to $55 million. 

The company opened 44 net new restaurants during the quarter, raising its store count to 7334.

For the full year, Wendy’s expects systemwide sales to drop 3-5 per cent, compared to the previous guidance of down 2 per cent to flat.