Wendy's Q2 Profit Rises, Adj. EPS Misses View - Quick Facts

(RTTNews) - Fast food chain Wendy's Co. (WEN) Thursday said second-quarter net income attributable to the company increased to $29.01 million from $12.22 million in the prior year. Earnings per share grew to $0.08 from $0.03.

Adjusted earnings per share grew to $0.09 from $0.08 in the second quarter of 2013. On average, 15 analysts polled by Thomson Reuters expected earnings of $0.10 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues fell to $523.43 million from $650.54 million in the prior year, amid a decline in sales. Analysts expected revenues of $518.11 million.

Total costs and expenses declined to $459.57 million from $593.55 million.

The company expects its third-quarter same-restaurant sales growth to be slightly less than the low end of its full-year outlook of 2.5 to 3.5 percent.

For 2014, Wendy's continues to expect adjusted earnings per share of $0.34 to $0.36. Analysts expect earnings of $0.35 per share.

The firm expects mid-teens adjusted earnings per share growth beginning in 2015.

Further, as part of its ongoing system optimization initiative, the company also announced a plan to sell all of its company-operated Canadian restaurants to franchisees and reinvest the sale proceeds to promote incremental development of franchised restaurants in Canada.

The company also announced that its Board of Directors authorized a new share repurchase program for up to $100 million of its common stock through the end of 2015.