(Bloomberg) -- A sharp economic slowdown isn’t likely to materialize, according to Wendy’s Co. Chief Financial Officer Gunther Plosch.

“I’m in the camp of that we’ll have at best a mild recession — maybe no recession at all,” Plosch said Wednesday on a call with analysts. “If I’m right on that one, it should be good for the category.”

The burger chain acknowledged pressure on consumers, with higher-income diners shifting into quick-service restaurants, Chief Executive Officer Todd Penegor said on the call. The resumption of student-loan payments is another potential issue, he added. 

However, he expects real incomes to improve as inflation moderates in the second half of 2023. Plosch echoed the sentiment.

“Disposable income is starting to improve a little bit,” Plosch said. “There’s a strong correlation of that with the restaurant business.”

Wendy’s shares rose 1.5% at 10:05 a.m. in New York after the company reported earnings per share and restaurant margin that outpaced analyst estimates. Same-store sales missed estimates. 

The Dublin, Ohio-based chain gets most of its sales from the US. 

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