DUBLIN, Ohio (AP) — Wendy’s second-quarter earnings and revenue beat analysts’ estimates, but a key sales metric came in well below Wall Street’s view.
Shares dropped more than 4 percent in Wednesday premarket trading.
The hamburger chain earned $26.5 million, or 10 cents per share, for the three months ended July 3. A year earlier the Dublin-Ohio based company earned $40.2 million, or 11 cents per share.
The prior-year period included a gain on the disposal of discontinued operations.
The performance was a penny better than what analysts surveyed by Zacks Investment Research called for.
Revenue fell to $382.7 million from $489.5 million, mostly because of owning fewer company-run restaurants. It topped the $367.4 million that analysts surveyed by Zacks expected.
Sales at North American restaurants open at least 15 months rose 0.4 percent. Analysts polled by FactSet forecast a 2.4 percent increase.
Wendy’s Co. said it’s still on track with plans to lower its company-run restaurant ownership to about 5 percent of the total system by year’s end. It plans to sell about 315 restaurants to franchisees this year. It’s sold 55 restaurants through the end of the second quarter.
The company now anticipates full-year adjusted earnings in a range of 39 cents to 40 cents per share. Its prior guidance was for 38 cents to 40 cents per share. Analysts polled by FactSet predict earnings of 39 cents per share.
Its shares dropped 44 cents, or 4.3 percent, to $9.75 in premarket trading. Its shares have fallen almost 4 percent over the past year.
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
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