The Wendy’s Company (NASDAQ:WEN) posted quarterly sales and profit that topped analysts’ estimates, helped by higher franchise fee revenue and lower costs expense. The fast-food company said profit was $48.9 million or 18 cents per share in the third quarter, compared with $7.6 million, or 3 cents per share, a year earlier. Excluding certain items, adjusted earnings were 11 cents per share. Analysts had project earning of 10 cents per share.
Revenue fell 21.7 percent to $364.01 million as the company had fewer company-owned store. The company said it was on track to reduce 5 percent of its company-operated restaurant ownership by the end of the year. Franchise fee revenue rose 28 percent in the third quarter.
“Our third-quarter same-restaurant sales for the North America system were driven by strong customer account growth and a slight increase in average check,” Chief Executive Todd Penegor said on a conference call.
Third-quarter same-store sales rose 1.4 percent in North American. Wendy’s raised its full-year outlook for adjusted earnings 40 to 41 cents a share from its previous guidance of 39 cents to 40 cents. The company also increased its dividend from 6 cents a share to 6.5 cents a share on a quarterly basis.