Saturday, December 20th-0.2°C
24562
23715

Wendy's lowers costs in 1st quarter, performance beats Wall Street expectations

DUBLIN, Ohio - Wendy's reported a sharply higher profit for its first quarter on Thursday as the hamburger chain saw lower costs and an improvement in sales.

The results beat Wall Street estimates, and its stock rose nearly 6 per cent higher in premarket trading.

Sales at established company-owned restaurants climbed 1.3 per cent as a result of successful product promotions and improved traffic at remodeled locations, Wendy's said.

At franchised locations, the figure rose 0.6 per cent.

Wendy's Co., based in Dublin, Ohio, attributed the stronger performance at its company-run locations to the higher number of remodeled stores, which the company has been pushing aggressively as a way to position itself as a more premium fast-food chain.

CEO Emil Brolick said the solid performance was particularly rewarding given an extremely rough winter that cut down on foot traffic, on top of already intense competition in the sector.

For the quarter ended March 30, Wendy's earned $46.3 million, or 12 cents per share. That compares with $2.1 million, or 1 cent per share, a year earlier.

The improved profit was partly the result of a reduction in total costs and interest expenses. The company also booked $8.6 million on the sale of some restaurants, as well as a gain on the sale of other surplus properties.

Removing non-repeating items, earnings were 7 cents per share. Analysts surveyed by FactSet predicted earnings of 5 cents per share.

Revenue declined 13 per cent to $523.2 million due to the sale of 418 company-run restaurants, but that was still better than the $502.7 million Wall Street expected.

Shares rose 48 cents to $8.81 before the market opened.

The restaurant operator stood by its outlook for 2014 adjusted earnings between 34 and 36 cents per share.

Long term, Wendy's still anticipates mid-teens growth in adjusted earnings per share.

Wendy's has more than 6,500 restaurants, with the majority of those in the U.S.

The Canadian Press


Read more Business News

23981


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


24387

FEATURED Property
21422761680 Ross Rd.
3 bedrooms 2 baths
$222,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24111

24111


Member of BC Press Council


24409