Wendy’s Co. shares rose 3.2% in Wednesday premarket trading after the fast-food chain reported third-quarter earnings that beat expectations and raised its earnings guidance. Net income for the quarter totaled $46.1 million, or 20 cents per share, down from $391.2 million, or $1.60 per share, last year. Adjusted EPS of 19 cents beat the 15-cent FactSet consensus. Wendy’s attributed the decline to the sale of its interest in Inspire Brands for $450 million. Revenue totaled $437.9 million, up from $400.6 million and ahead of the $434.0 million FactSet outlook. Wendy’s expects 2019 global sales to increase 3.5% to 4%, narrowing the previous guidance for 3% to 4% growth. Adjusted EPS is forecast from down 1.5% to up 1.5% versus previous guidance for a 3.5% to 6.5% decline. The FactSet outlook is for sales of $1.7 billion, suggesting a 7.1% increase, and EPS of 58 cents, implying a 2.4% decline. Wendy’s says it’s on track to reach 2020 sales of $12 billion to $12.5 billion. The company is adding breakfast in 2020. Wendy’s stock has gained 33.5% for the year to date while the S&P 500 index is up 22.7% for the period.
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