Wendy's, Free of Arby's, Reports Higher Net Income
Wendy's says its net income climbed slightly in the second quarter on improving sales in its first earnings period since selling the struggling Arby's chain.
Revenue excluding Arby's climbed 2 percent to $622 million, helped partly by higher prices but also by customers visiting more and buying more when they did.
Net income rose 5 percent to $11.3 million.
Like other restaurants, Wendy's is grappling with higher costs for raw ingredients, which caused the profit margin at company-owned restaurants to plummet to 13.9 percent from 16.4 percent. The company also spent more on advertising.
Revenue at company-owned stores open at least a year rose 2.3 percent, the chain's biggest increase since 2008.
Wendy's last month sold Arby's to a private-equity firm after about three years as a combined company.
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