Wendy's Raises Forecast, Profit Beats Estimates
Burger chain Wendy's raised its full-year profit forecast and reported a higher-than-expected quarterly profit, as new promotions such as its '4 for $4 meal' and renovated restaurants attracted more diners.
Shares of the company rose 6 percent in premarket trading.
Wendy's in October launched its '4 for $4 meal' which features a bacon cheeseburger, chicken nuggets, fries and a drink. It added the Chicken BLT burger to the offer recently.
The company has also been investing in refurbishing its restaurants, rolling out self-order kiosks and a mobile ordering app to pull in more customers.
The Dublin, Ohio-based company's first-quarter sales at North American restaurants open for at least 15 months rose 3.6 percent, higher than the 3.3 percent increase estimated by analysts polled by research firm Consensus Metrix.
Wendy's raised its full-year 2016 adjusted profit forecast to 38-40 cents per share from 35-37 cents per share. Analysts on average expected full-year profit of 36 cents, according to Thomson Reuters I/B/E/S.
Net income fell to $25.4 million, in the first quarter ended April 3, from $27.5 million a year earlier.
On a per share basis, earnings rose to 9 cents per share from 7 cents per share as the company had fewer shares outstanding.
Revenue fell 16 percent to $378.8 million, but came in above the average analyst estimate of $352.1 million. On an adjusted basis, the company earned 11 cents per share, beating analysts' average estimate of 6 cents.
(Reporting by Ramkumar Iyer in Bengaluru; Editing by Shounak Dasgupta)