Wendy's (WEN) Stock Advances as Earnings, Sales Beat Expectations
NEW YORK (TheStreet) -- Wendy's (WEN) - Get Report stock is higher by 2.97% to $9.71 in early morning trading on Wednesday, after reporting 2015 third quarter earnings results before the market open.
The quick-service restaurant company posted earnings of 9 cents per share for the most recent quarter, up from 7 cents per share for the year ago quarter.
Revenue declined by 6.5% year over year, to $465 million from $496.7 million.
Analysts had forecast for earnings of 8 cents per share on revenue of $438 million.
North American same-restaurant sales rose by 3.1% for the quarter, ahead of analysts' estimates for a 2.2% increase, according to Reuters.
Wendy's expects 2015 adjusted earnings per share toward the high end of its prior forecast of 31 cents per share to 33 cents per share.
"Our strong third-quarter results demonstrate the positive impact of our transition to a predominantly franchised model, with royalties and rental income contributing a higher amount of earnings," CEO Emil Brolick said in a statement.
The company noted that CFO Todd Penegor will succeed outgoing CEO Emil Brolick following a transition period that will start in the fiscal 2016 first quarter.
Separately, TheStreet Ratings team rates WENDY'S CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
We rate WENDY'S CO (WEN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
You can view the full analysis from the report here: WEN
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