Wendy’s stock falls after revenue miss

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Wendy’s Co. shares fell 2.5% in Wednesday premarket trading after the fast-food chain reported third-quarter revenue that missed expectations. Net income totaled $39.8 million, or 17 cents per share, down from $46.1 million, or 20 cents per share, last year. Adjusted EPS of 19 cents beat the FactSet consensus for 17 cents. Revenue of $452.2 million was up from $437.9 million last year but below the FactSet consensus for $454.0 million. Global same-restaurant growth of 6.1% was ahead of the FactSet consensus of 5.4% growth and was the highest rate of growth in 15 years, according to a statement from Chief Executive Todd Penegor. U.S. same-restaurant growth of 7% also beat the FactSet consensus for a 6.8% rise. Nearly all Wendy’s restaurants, 99%, were operating as of Sept. 27. Wendy’s increased its quarterly dividend by 40% to 7 cents per share, payable on Dec. 15 to shareholders of record as of Dec. 1. Wendy’s repurchased 100,000 shares in the third quarter and has repurchased the same amount thus far in the fourth quarter. Wendy’s did not give guidance due to the uncertainty from the coronavirus pandemic. Wendy’s stock is up 4.2% for the year to date while the S&P 500 index has gained 4.3% for the period.
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