Shares of Wendy's Co. (WEN) rose 1.2% in premarket trading Wednesday, after the fast-food chain reported first-quarter results that beat expectations while keeping its full-year outlook intact. Net income rose to $39.8 million, or 19 cents a share, from $37.4 million, or 17 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of 21 cents topped the FactSet consensus of 20 cents. Total revenue grew 8.2% to $528.8 million, above the FactSet consensus of $522.4 million, as sales at company-operated restaurants, franchise royalty revenue and advertising funds revenue all increased. Same-store sales rose 8.0% to beat the FactSet consensus of 6.8% growth, as domestic same-store sales rose 7.2% to beat expectations of a 6.8% rise. As part of the previously announced "organizational redesign," the company recognized costs of $6.7 million during the first quarter, primarily for severance and related costs. For 2023, the company kept its guidance ranges for adjusted EPS of 95 cents to $1.00 -- the FactSet consensus is 98 cents -- and for sales growth of 6% to 8%. The stock has gained 1.5% year to date through Tuesday, while the S&P 500 has advanced 7.3%.
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May 10, 2023 07:16 ET (11:16 GMT)
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