Wendy's Stock Falls After Same-store Sales Miss Offsets Profit, Revenue Beat

Wendy's Co.'s stock dropped 1.4% in premarket trade Wednesday, after the fast-food restaurant chain reported second-quarter earnings and revenue that beat expectation, but missed on same-restaurant sales. Earnings for the latest quarter fell to $26.5 million, or 10 cents a share, from $40.2 million, or 11 cents a share, in the same period a year ago. Adjusted earnings per share came to 10 cents, above the FactSet consensus of 9 cents. Revenue fell to $382.7 million from $489.5 million, beating the FactSet consensus of $367 million, but North America same-restaurant sales rose just 0.4%, compared with expectations of 1.9% growth. For 2016, Wendy's lifted its adjusted EPS guidance range to 39 cents to 40 cents from 38 cents to 40 cents, but cut its North America same-store sales growth outlook to 1% to 2% from a previous forecast of about 3%. The stock had dropped 5.4% year to date through Tuesday, while the S&P 500 has gained 6.7%.