Wendy's Co. Q2 Profit Beats Estimate - Quick Facts

(RTTNews) - The Wendy's Co. (WEN) reported preliminary unaudited results for the second quarter ended June 30, 2013, as well as plans to file its Form 10-Q, including its final financial statements for the second quarter on August 7, 2013.

The company posted quarterly net income attributable to the company of $12.2 million, or $0.03 per share, as against a loss of $5.5 million, or $0.01 per share, last year. On an adjusted basis, per-share earnings stood at $0.08 in the second quarter of 2013. On average, 18 analysts polled by Thomson Reuters expected earnings per share of $0.06 for the quarter. Analysts' estimates typically exclude one-time items. The recent results include a $21.0 million pretax charge from the early extinguishment of debt, while the 2012 results included a $25.2 million pretax charge from the early extinguishment of debt, according to Wendy's.

Consolidated revenues were $650.54 million this quarter, up compared with $645.87 million in the 2012 second quarter. Analysts estimated revenues of $655.94 million for the quarter.

In addition, the company plans to help optimize its restaurant portfolio by concentrating its ownership geographically and reducing total system ownership from 22 percent to around 15 percent with the sale of about 425 Company-operated restaurants to franchise operators. The firm is targeting the end of the second quarter of 2014 for the closing of these transactions.

Wendy's expects to improve its financial performance as a result of the system optimization initiative. Due to the expected benefits from its system optimization initiative, the firm now believes it would generate a long-term adjusted earnings per share growth rate in the mid-teens, beginning in 2014, versus its prior guidance of high single-digit to low double-digit growth.

Further, the company confirmed its long-term adjusted EBITDA outlook of high single-digit to low double-digit growth. Also, the board has authorized a 25 percent increase in the quarterly cash dividend rate from $0.04 to $0.05 per share. The increase would be effective with the next quarterly cash dividend, payable September 17, 2013, to shareholders of record as of September 3, 2013.

Wendy's said it did not buy back any stock in 2012 or the first half of 2013, but intends to begin repurchasing shares in the third quarter.