US burger chain Wendy’s quarterly profit, sales beat estimates

ByRamotar

US burger chain Wendy’s quarterly profit, sales beat estimates

  • Wendy’s reported a 12 percent drop in profit, hurt by higher labor costs and lower revenue.
  • Revenue fell to $285.8 million from $378.8 million a year earlier, mainly because the company sold more restaurants to franchisees.
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Wendy’s reported higher-than-expected quarterly same-restaurant sales and profit, driven by the popularity of its value meals such as “4 for $4” and lower costs.

The company’s shares were up 5.2 percent at $15.89 in light premarket trading on Wednesday.

Wendy’s in January added the Double Stack cheeseburger, which includes a burger, chicken nuggets, a small serving of fries and a drink, to its “4 for $4” value meals.

The meal and other promotions have helped the burger chain attract diners amid a drop in grocery prices in recent months, which is encouraging more people to cook at home.

Sales at restaurants open at least a year rose 1.6 percent, above the 1.1 percent growth expected by analysts polled by research firm Consensus Metrix.

Net income fell to $22.3 million from $25.4 million in the first quarter ended April 2, the company said.

On a per share basis, the company’s profit remained unchanged at 9 cents per share due to fewer outstanding shares from a year earlier.

Revenue fell 24.5 percent to $285.8 million from a year earlier, mainly because the company sold more restaurants to franchisees.

Analysts on average had expected earnings of 8 cents per share on revenue of $282.6 million, according to Thomson Reuters I/B/E/S.

Source :
cnbc.com1
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12+ years in consulting and accounting field for helping multi-unit franchisee businesses to take advantage of every opportunity available to help their businesses grow and thrive. My goal is to bring value to my clients with them by providing quality service and innovative technology and processes that reduce their cost and turnaround time in producing financials and management reports which help them to take the timely decision. Specialties: Tax Ready Financials Account Payable Management Payroll Profit leakage analysis Break even analysis Helping on getting funds from bank and financial institutions by providing various financial reports and ratios

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Ramotar administrator

12+ years in consulting and accounting field for helping multi-unit franchisee businesses to take advantage of every opportunity available to help their businesses grow and thrive. My goal is to bring value to my clients with them by providing quality service and innovative technology and processes that reduce their cost and turnaround time in producing financials and management reports which help them to take the timely decision. Specialties: Tax Ready Financials Account Payable Management Payroll Profit leakage analysis Break even analysis Helping on getting funds from bank and financial institutions by providing various financial reports and ratios