Wendy's Shares Rise After Earnings Beat

Wendy's Co. shares rose 2.8% in Wednesday premarket trading after the fast-food chain's second-quarter earnings and revenue beat expectations. Wendy's reported a net loss of $1.8 million, or one cent per share, after net income of $26.5 million, or 10 cents per share, for the same period last year. Wendy's attributed the decline to a series of restaurant transactions. Adjusted EPS was 15 cents, ahead of the 13-cent FactSet consensus. Revenue was $320.3 million, down from $382.7 million last year but ahead of the $301.0 million FactSet consensus. The revenue decrease was due to 251 fewer company-owned restaurants year-over-year, the company said. North American same-restaurant sales increased 3.2%. Wendy's expects 2017 same-restaurant sales to increase 2% to 3% and adjusted EPS of 45 cents to 47 cents. The FactSet EPS consensus is 46 cents. Wendy's shares are up 12.6% for the year so far, outpacing the S&P 500 index , which is up 10.6% for the period.