Wendy's Falls on Q3 Revenue Miss

The fast food chain also increased its quarterly dividend by 40% to 7 cents per share.
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Shares of Wendy's  (WEN) - Get Report were falling in premarket trading Wednesday after the fast food company reported mixed third quarter results, with revenue falling short of expectations. 

The Dublin, Ohio-based company reported third quarter net income of $40 million with an adjusted EPS of 19 cents per share. Revenue of $452.2 million was up from $437.9 million a year ago.

However, analysts were expecting revenue of $454 million on earnings of 17 cents per share. 

"We remain focused on our goal of delivering efficient, accelerated growth behind our three major long-term growth pillars: building our breakfast daypart, growing our digital business and expanding our International footprint," said CEO Todd Penegor in a statement. 

Wendy's shares were falling 4.5% to $22.10 in premarket trading on Wednesday. 

The company posted its highest global same-store sales growth performance in over 15 years. That growth was driven domestically as U.S. same store sales rose nearly 8%, while international comps fell 3.5%. 

The company also reported an increase in operating profit that was driven primarily by higher franchise royalty revenue and fees, as well as lower franchise support and other costs. 

"In addition to these very strong sales, our restaurant economic model continues to strengthen, with Company-operated restaurant margin expansion compared to the prior year, despite significant commodity headwinds," Penegor said. 

Wendy's also announced that it was increasing its quarterly dividend by 40% to 7 cents per share, payable on Dec. 15 to shareholders of record as of Dec. 1. 

Wendy's previously withdrew its 2020 fiscal year guidance and also pulled its 2021-2024 long-term outlook due to current market conditions.