Wendy’s (NASDAQ:WEN) shares jumped Wednesday following its second-quarter earnings release, which saw it top profit expectations.
The fast food chain reported earnings of $0.28 per share, $0.01 better than the analyst estimate of $0.27, while revenue for the quarter came in at $561.57 million, up 4.4% YoY but below the consensus estimate of $566.37 million.
The YoY revenue increase was put down to higher sales at company-operated restaurants, an increase in franchise royalty revenue, and an increase in advertising funds revenue.
Wendy's shares are currently up 1.8% at $22.12 per share.
"I am proud of the entire Wendy's® system for delivering another quarter of meaningful sales and profit growth alongside sustained progress against our strategic growth pillars," President and Chief Executive Officer Todd Penegor said.
"We continued to drive significant profit expansion, supported by strong same-restaurant sales momentum, resulting in an over 200 basis point year-over-year increase in U.S. Company-operated restaurant margin."
Global systemwide sales growth in the quarter was 6.9%, with international systemwide sales growth a driving factor, climbing 12.7%. For the U.S., it was 6.1%.
Looking ahead, Wendy's sees full-year earnings per share between $0.95 and $1, versus the consensus of $0.98. Global systemwide sales growth is seen from 6% to 8%.