Wendy's announces restaurant sale; Dominos profit beats
Wendy's reported a quarterly profit that was above Wall Street expectations and said it is selling 425 restaurants to franchisees, while Domino's Pizza posted a profit that topped estimates, bolstered by strong results around the world.
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Companies such as McDonald's typically own a small percentage of their restaurants. This fattens their profit margins by reducing operating costs and lets them rely on fees paid by franchisees.
For the quarter, Wendy's said sales edged up 0.4 percent at restaurants open at least a year.
It said it earned $12.2 million, or 3 cents per share. That compares with a loss of $5.5 million, or 1 cent per share, a year ago.
Not including one-time items, Wendy's earned 8 cents per share, more than the 6 cents per share Wall Street expected.
Revenue rose to $650.5 million, short of the $659.5 million analysts expected.
Domino's quarterly profit beats
Domino's Pizza, the second-largest U.S. pizza chain, on Tuesday reported profit that was helped by strong results around the world, and declared a quarterly dividend of 20 cents per share.
The results come at a time when U.S. restaurant operators ranging from McDonald's to Darden Restaurants, the parent of Olive Garden, are struggling to increase profits in the face of intense competition.
Second-quarter net income at grew almost 19 percent to $33.3 million, or 57 cents per share, topping analysts' average estimate by one penny per share, according to Thomson Reuters I/B/E/S.
Revenue increased 10.1 percent to $414 million.
Closely watched sales at restaurants open at least one year were better than expected, according to Consensus Metrix. Same-restaurant sales rose 6.7 percent in the United States and 5.8 percent internationally.
—By The Associated Press and Reuters.