Wendy’s tops profit expectations but misses on revenue, as U.S. sales growth comes up shy

Shares of Wendy’s Co.
WEN,
-1.63%
slipped 0.2% in premarket trading Wednesday, after the fast-food burger chain reported second-quarter profit that topped expectations but revenue that came up shy, while affirming the full-year outlook. Net income rose to $59.6 million, or 28 cents a share, from $48.2 million, or 22 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to 28 cents from 24 cents and topped the FactSet consensus of 27 cents. Revenue grew 4.4% to $561.6 million, below the FactSet consensus of $566.2 million. Overall same-store sales growth of 5.1% missed the FactSet consensus for a 5.3% rise, as domestic growth of 4.9% missed expectations of a 5.8% rise while international growth of 7.2% beat expectations of a 6.6% increase. For 2023, Wendy’s affirmed its guidance range for adjusted EPS of 95 cents to $1 and for sales growth of 6% to 8%. The stock has shed 5.4% over the past three months through Tuesday while the S&P 500
SPX,
-0.30%
has gained 9.2%.