UPDATE: Wendy's Posts Upbeat Q1 Earnings, Shares Rise

Wendy's Co WEN reported a rise in its first-quarter earnings. Wendy's posted its quarterly earnings of $46.3 million, or $0.12 per share, compared to $2.1 million, or a penny per share, in the year-ago period. Its revenue shrank 13% to $523.2 million, while operating expenses declined 25%. However, analysts were expecting earnings of $0.05 per share on revenue of $498 million. Wendy's same-restaurant sales gained 1.3%. The company backed its earnings forecast for the full year. President and Chief Executive Officer Emil Brolick said, "I'm pleased to report continued progress with Wendy's brand transformation." The executive continued, "Our Image Activation initiative is accelerating, bringing to life our 'A Cut Above' brand position for consumers in a powerful way. Our product initiatives are successfully leveraging our brand heritage of quality and innovation and are distinguishing Wendy's in the marketplace. With the implementation of mobile payment, we have taken another step to connect with millennial consumers. It is also very rewarding to be able to report solid results in the face of a tough winter and an intensely competitive market.” Wendy's shares gained 4.92% to $8.74 in pre-market trading.