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Wendy’s earnings and revenue rise, but miss expectations

Wendy’s Co. shares fell 2.4% in Wednesday premarket trading after the fast-food chain reported a fourth-quarter earnings and revenue miss. Net income totaled $38.7 million, or 17 cents per share, up from $26.5 million, or 11 cents per share, last year. Revenue of $474.3 million was up from $427.2 million last year. The FactSet consensus was for EPS of 18 cents and revenue of $477.0 million. Global same-restaurant sales grew 4.7%, below the FactSet consensus for 5.7% growth. And domestic same-restaurant sales were up 5.5%, also below the FactSet consensus for 6.1% growth. Wendy’s says year-to-date U.S. same-restaurant sales through the week ending February 21 were up 6%, with a global increase of about 5%. For the year, Wendy’s is guiding for global systemwide growth of 6% to 8%. The FactSet consensus is for $1.795 billion, suggesting growth of 3.4%. Wendy’s stock has gained 11.2% over the past year while the S&P 500 index is up nearly 29% for the period.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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