Daily Journal masthead

Wendy's 2Q revenue tops analysts' expectations; co. says restaurant sales on track


DUBLIN, Ohio — Wendy's second-quarter profit climbed on lower expenses, while revenue topped analysts' estimates.

The restaurant operator also announced that the planned sale of 540 company-run restaurants is on schedule and that it plans an accelerated share buyback for about $165 million.

Shares climbed 5 percent before the market opened Wednesday.

Wendy's earned $40.2 million, or 11 cents per share, for the period ended June 28. A year earlier the Dublin, Ohio-based company earned $29 million, or 8 cents per share.

Earnings from continuing operations, adjusted for one-time gains and costs, came to 8 cents per share.

The results came in just short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.

Expenses were $425.2 million, compared with $444.9 million in the prior-year period.

Revenue totaled $489.5 million, beating Wall Street forecasts. Six analysts surveyed by Zacks expected $489.3 million.

Sales at North American company-run restaurants open at least a year increased 2.4 percent. The figure was up 2.2 percent for franchise-operated locations.

The Wendy's Co. is maintaining its outlook for full-year adjusted earnings in a range of 31 cents to 33 cents per share. Analysts polled by FactSet predict earnings of 32 cents per share.

In premarket trading, the company's shares added 51 cents to $10.80.


Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on WEN at http://www.zacks.com/ap/WEN


Keywords: Wendy's, Earnings Report

Think your friends should see this? Share it with them!

Story copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Feedback, Corrections and Other Requests: AP welcomes feedback and comments from readers. Send an email to info@ap.org and it will be forwarded to the appropriate editor or reporter.

We also have more stories about:
(click the phrases to see a list)


Follow Daily Journal:

All content copyright ©2015 Daily Journal, a division of Home News Enterprises unless otherwise noted.
All rights reserved. Privacy policy.