Wendy's beats on profits, increases its share repurchase program

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Wendy's Co. WEN, +0.48% shares rose 1.4% in Wednesday premarket trading after the fast-food chain reported profit that beat expectations and increased its share repurchase program. Net income totaled $41.2 million, or 18 cents per share, up from 39.8 million, or 17 cents per share, last year. Adjusted EPS of 19 cents beat the FactSet consensus for 18 cents. Revenue of $470.3 million was up from $452.2 million and just below the FactSet consensus for $470.5 million. Same-restaurant sales growth was 3.3%, below the FactSet consensus for 4.9% growth. U.S. same-restaurant sales growth was 2.1%, and international same-restaurant sales growth was 14.7%. Wendy's added $80 million to its share repurchase program, bringing the total to $300 million. The company is also launching a $125 million share repurchase program in the fourth quarter. For 2021, Wendy's now expects global sales growth of 11% to 12% and adjusted EPS of 79 cents to 80 cents. The FactSet consensus is for sales of $1.891 million, suggesting 9.1% growth, and EPS of 82 cents. Wendy's stock is up 5.1% for the year to date while the benchmark S&P 500 index SPX, -0.35% has gained 24.7% for the period.

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