Wendy's (WEN) - Get Report rose on Wednesday after posting quarterly earnings and sales that beat analysts' forecasts and the fast-food chain raised its outlook for the year amid expectations of a post-pandemic rebound.
Dublin, Ohio-based Wendy's on Wednesday reported first-quarter earnings of $41.4 million, or 18 cents a share. On an adjusted basis, earnings were 20 cents a share, beating the estimate of 14 cents of analysts polled by FactSet.
Revenue came in at $460.2 million, also beating Wall Street forecasts of $444.1 million. Same-restaurant sales in the U.S. rose 13.5% and globally they were up 13%.
Investors reacted to the hamburger chain’s full-year outlook as well as positive comments from CEO Todd Penegor, who called the company's most recent quarter "outstanding."
“We are increasing our 2021 financial outlook meaningfully across all key financial metrics, driven by an outstanding first quarter that underscores our continued momentum and the overall strength of our business,” Penegor said.
“The robust growth in our business continued in the first quarter of 2021 as sales significantly exceeded our expectations and fueled our restaurant economic model, leading to outsized profits," he added.
Wendy's said it sees adjusted earnings for the year of 72 cents a share to 74 cents a share, up from its previous outlook of 67 cents a share to 69 cents a share.
Wendy's said it expects adjusted earnings before interest, taxes, depreciation and amortization of $455 million to $465 million, up $10 million from its previously guided range. It sees cash flows from operations of $330 million to $350 million, up $20 million from its previously guided range.
The company said it expects capital expenditures of $80 million to $90 million and free cash flow of $250 million to $260 million. It had expected free cash flow of $230 million to $240 million.
The company also raised its quarterly dividend by 11% to 10 cents a share, and boosted its stock buyback plan to $150 million.
At last check, shares of Wendy’s were up 4.08% at $23.73 .