Wendy's, the second-largest U.S. hamburger chain, reported lower-than-expected quarterly revenue even as losses narrowed due to lower costs and new menu items like Pretzel Bacon Cheeseburger.
Wendy's shares, which nearly doubled this year to hit a five-year high on Wednesday, closed Thursday down 11.4 percent at $8.05. They had dropped as much as 13.8 percent during the trading session.
The company reported third-quarter revenue of $640.8 million, missing the average analyst estimate of $643.4 million.
Wendy's North America company-owned restaurants sales rose 3.2 percent and franchise same-store sales rose 3.1 percent in the quarter ended Sept. 30.
Third-quarter company-owned same-store sales were modestly below the 3.9 percent polled by Consensus Metrix. Franchised same-store sales also came in lower than the 3.8 percent polled by Consensus Metrix.
Wendy's has been revamping its image with a new logo, restaurant renovations and a new 'Right Price, Right Size Menu'.
Net loss attributable to Wendy's narrowed to $1.9 million, or breakeven on a per share basis, from a loss of $26.2 million or 7 cents per share, a year earlier.
On an adjusted basis, the company earned 8 cents per share, beating the average analyst estimate of 6 cents per share, according to Thomson Reuters I/B/E/S.
Wendy's, known for its thick frosty milkshakes and square hamburger patties, has more than 6,500 franchise and company-operated restaurants worldwide.
Dublin, Ohio-based Wendy's shares closed at $9.09 on Wednesday on the Nasdaq.