NEW YORK (TheStreet) -- Shares of The Wendy's Co. (WEN) are up by 1.38% to $8.09 at the start of trading on Thursday, after the company reported an increase in its 2014 second quarter net income to $29 million from $12.2 million for the second quarter of 2013.
The fast food chain's reported earnings per share spiked to 8 cents for the 2014 second quarter, from 3 cents for the 2013 quarter, while adjusted earnings grew by a 1 cent to 9 cents per share.
However, revenue for the second quarter dropped to $523.4 million versus $650.5 million for the 2013 second quarter.
Wendy's sold 418 company-operated restaurants as part of its system optimization initiative, which led to the rise in profit, but a loss in revenue.
The company also announced its plan to franchise all of its company owned restaurants in Canada in order to increase its restaurant development.
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 multiple 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 solid stock price performance, growth in earnings per share, compelling growth in net income, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
You can view the full analysis from the report here: WEN Ratings Report