Wendy’s Second-Quarter Earnings Top Street Forecast

Fast-food chain Wendy’s (WEN) reiterated its full-year projections on Wednesday as it reported mixed second-quarter results, with earnings coming in just ahead of predictions while revenue and same-restaurant sales were shy of Wall Street’s expectations.

Adjusted earnings rose to $0.18 a share compared with $0.14 a share in the same period of 2018, ahead of the consensus on Capital IQ by a cent. Revenue increased 5.9% to $435.3 million, but that was beneath the Street’s view for $439.6 million.

Revenue benefitted from higher sales at company-operated restaurants with more locations operating and “positive same-restaurant sales,” the Dublin, Ohio-based firm said. It also had higher franchise royalty revenue, “driven by positive same-restaurant sales and new restaurant development,” Wendy’s said.

North America same-restaurant sales growth was 1.4%, slower than the 1.9% pace of a year ago and missing the Street’s expectation for 1.5%. Systemwide sales growth rose 3% in North America, up from 2.7% last year but slowed to 10.4% on an international basis, down from 12.8% previously. Global systemwide sales grew 3.3% from 3.1% a year earlier.

“We are executing on our plan to accelerate same-restaurant sales in North America and drive global restaurant expansion, fueled by a healthy restaurant economic model,” said Todd Penegor, the company’s chief executive.

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