NEW YORK – Wendy's reported second-quarter profit of $29 million, or 8 cents a share, up from $12.2 million, or 3 cents a share in the same period a year ago.
Excluding non-recurring items, adjusted profit was 9 cents a share, matching the average analyst estimate compiled by FactSet. Total sales declined to $523.4 million from $650.5 million a year ago, but exceeded the FactSet estimate of $515 million.
Same-store sales increased 3.9%. The fast-food restaurant chain affirmed its 2014 adjusted earnings-per-share outlook of 34 cents to 36 cents.
Wendy's added that it was selling 100% of its Canadian operations, or about 135 company-operated stores, to franchisees by the end of the first quarter or 2015 as it looks to reduce operating expenses and increase cash flow.
"We believe this strategy will accelerate our commitment to growth in Canada and complement our goal of returning our U.S. restaurant system to positive net development," said Chief Executive Emil Brolick. The shares were still unchanged in the premarket.
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