Wendy’s earnings beat expectations, declares quarterly dividend

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Wendy’s Co. reported second-quarter net income of $24.9 million, or 11 cents per share, down from net income of $32.4 million, or 14 cents per share, last year. Adjusted EPS of 12 cents was ahead of the FactSet forecast for 11 cents per share. Revenue of $402.3 million was down from $435.3 million last year but below the FactSet consensus for $409.0 million. U.S. same-restaurant sales fell 4.4%, ahead of the FactSet consensus for a 5.6% decline. Global same-store sales fell 5.8%, just below the FactSet outlook for a 5.6% decline. The same-store decrease was partially offset by the new breakfast menu, Wendy’s says. Breakfast accounted for about 8% of second-quarter U.S. sales. Wendy’s declared a dividend of 5 cents per share, payable on Sept. 15, 2020 to shareholders of record as of Sept. 1, 2020. And the fast-food chain intends to resume share repurchases in 2020. The board has approved an extension of the $100 million buyback program, which was set to expire in February 2022. Wendy’s previously withdrew its guidance due to COVID-19. Wendy’s stock edged down 0.5% in Wednesday premarket trading but has gained 7.2% for 2020 to date. The S&P 500 index is up 2.3% for the year so far.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.