GO
Loading...

Enter multiple symbols separated by commas

Wendy's Profit Falls on Revamp Expenses

Wendy's International said its net income fell, but earnings before restructuring and other expenses rose 55 percent due to a menu price increase and cost controls.

The restaurant company's shares dropped 3 cents at $34 in after-hours trading, having closed up 78 cents at $34.03 during regular market trade on the New York Stock Exchange.

The world's third-largest hamburger chain also said full-year earnings would be near the high end of its targeted range.

Third-quarter earnings from continuing operations rose to $38.6 million, or 44 cents per share, from $24.9 million, or 21 cents per share, a year ago. But those results exclude costs for restructuring and an ongoing review of strategic alternatives by the hamburger chain's board of directors.

Including those charges, net income fell to $29.9 million, or 34 cents per share, from $69.2 million, or 58 cents per share, a year ago, when Wendy's still owned the Tim Hortons and Baja Fresh chains.

In a statement, Wendy's said it expects to report full-year earnings near the high end of a $1.09 per share to $1.23 per share range it forecast earlier this year.

Wall Street analysts, on average, had been expecting earnings of $1.12 cents per share, according to Reuters Estimates.

For the third quarter, Wendy's total revenue rose 0.2 percent to $631.1 million. Analysts had been expecting revenue of $629.4 million, according to Reuters Estimates.

As previously announced, sales at restaurants open at least 15 months rose 0.2 percent at U.S. company-owned restaurants and climbed 1.3 percent at U.S. franchised restaurants during the quarter.