DUBLIN, Ohio (AP) — Wendy's second-quarter profit climbed on lower expenses, while revenue topped analysts' estimates.
The restaurant operator also announced that the planned sale of 540 company-run restaurants is on schedule and that it plans an accelerated share buyback for about $165 million.
Shares climbed 5 percent before the market opened Wednesday.
Wendy's earned $40.2 million, or 11 cents per share, for the period ended June 28. A year earlier the Dublin, Ohio-based company earned $29 million, or 8 cents per share.
Earnings from continuing operations, adjusted for one-time gains and costs, came to 8 cents per share.
The results came in just short of Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.
Expenses were $425.2 million, compared with $444.9 million in the prior-year period.
Revenue totaled $489.5 million, beating Wall Street forecasts. Six analysts surveyed by Zacks expected $489.3 million.
Sales at North American company-run restaurants open at least a year increased 2.4 percent. The figure was up 2.2 percent for franchise-operated locations.
The Wendy's Co. is maintaining its outlook for full-year adjusted earnings in a range of 31 cents to 33 cents per share. Analysts polled by FactSet predict earnings of 32 cents per share.
In premarket trading, the company's shares added 51 cents to $10.80.