Shares of Wendy's fell more than 7 percent in midday trading Wednesday despite the fast food chain beating expectations on both the top and bottom lines.
Earlier, the stock traded higher.
The company reported adjusted first-quarter earnings per share of 11 cents on revenue of $378.8 million. Analysts polled by Reuters expected Wendy's to post earnings of 6 cents a share on revenue of $352 million.
Wendy's also raised its full-year earnings guidance to a range of 38 cents to 40 cents per share, from a 35 cents to 37 cents range. Analysts on average expected full-year profit of 36 cents, according to Thomson Reuters.
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Wendy's in October launched its "4 for $4 meal," which features a bacon cheeseburger, chicken nuggets, fries, and a drink. It added the Chicken BLT burger to the offer recently.
The company has also been investing in refurbishing its restaurants, rolling out self-order kiosks and a mobile ordering app to pull in more customers.
The Dublin, Ohio-based company's first-quarter sales at North American restaurants open for at least 15 months rose 3.6 percent, higher than the 3.3 percent increase estimated by analysts polled by research firm Consensus Metrix.
"Our strong first-quarter demonstrates the continued momentum of our core business, as well as the positive impact of our system optimization and image activation growth initiatives," President and CFO Todd Penegor said in a statement.
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Wendy's stock has gained nearly 22 percent over the past three months.
WEN in past 3 months
Source: FactSet
—Reuters contributed to this report.