Wendy's reported a third-quarter net profit of $22.8 million, or 6 cents a share, compared with a loss of $1.9 million, or about breakeven on a per-share basis, in the same period a year ago. Excluding non-recurring items, the adjusted earnings per share were 8 cents, just shy of the FactSet consensus analyst estimate of 9 cents. Total revenue fell 20% from last year to $512.5 million, and company-operated same-store sales growth was 2%, missing analyst forecasts $514.7 million and 2.4%, respectively. The fast-food restaurant operator affirmed its full-year 2014 adjusted earnings outlook, and said it was raising its quarterly dividend by 10% to 55 cents a share. Wendy's also announced it was "realigning and reinvesting" its resources, which will result in the reduction of company-operated stores over time, as it aims to cut costs by $30 million. The stock edged up 0.5% in premarket trade. It has lost 7.6% so far this year through Wednesday, compared with a 9.5% gain in the S&P 500.
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