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Wendy’s Co. Shares Surge on Preliminary Q2 Results (WEN)

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Shares of Wendy’s Co. (NASDAQ: WEN), a Dublin, Ohio-based quick-service restaurant company, have risen sharply today after the company reported its preliminary second-quarter financial results. The company also announced a system optimization initiative today, which has been designed to further to boost its earnings quality, optimize restaurant portfolio, and enhance shareholder returns.

Emil Brolick, President and CEO of Wendy’s Co., said that the system optimization initiative will create a growth opportunity for both WEN and strong franchise operators by expanding participation in the company’s Image Activation program to a larger base of franchises.

WEN also released its preliminary second-quarter results. The company said that its consolidated revenue for the second quarter stood at $650.5 million, compared to $645.9 million reported for the same period in the previous year. Company-operated restaurants in North America generated same-store sales growth of 0.40% during the second quarter. Meanwhile, franchise same-store sales in North America rose 0.30% in the quarter.

Adjusted EBITDA for the second quarter was $102.1 million, representing a 15% over the same period in the previous year. The company’s net income for the quarter stood at $12.2 million, compared to a net loss of $5.5 million reported for the same period in the previous year.

Wendy’s maintained its 2013 adjusted EBITDA forecast of $350 million to $360 million and adjusted earnings per share forecast of $0.20 to $0.22.

At last check, WEN shares were trading 12.57% higher at $7.52 on above average volume of 10.51 million. The stock hit a 52-week high of $7.55 earlier today.








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Post Written By: Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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