Wendy's (WEN) shares fall after the company missed on second-quarter revenue estimates, while narrowly beating profit expectations.
Morningstar Equity Analyst Sean Dunlop joins Yahoo Finance Live to discuss some of the top takeaways from the earnings call, including the chain's "intensified" and "substantial permitting delays" for expansion plans in the U.S. and Australia.
"In this sort of environment, we like restaurants that have… compelling value offerings. We like restaurants that have scale-driven cost advantages," Dunlop says.
Companies like McDonald’s (MCD) and Yum! Brands (YUM) are "able to generate a lot more leverage over suppliers upstream and over independent software providers, and so they’re able to offer the same food at lower cost with equal or better margin," Dunlop says on Wendy's competitors.
