Wendy's Q2 Tops Street Estimates, Guidance Increased

Wendys Co WEN continued its positive earnings surprise for the fourth straight quarter when its earnings for the second quarter came in above the estimates. The company's revenue was also more than the predicted levels. Aside from that, the company lifted its full year forecast.

The restaurant firm's net income was $26.5 million, down 34.1 percent from $40.2 million in the same quarter last year. While its GAAP EPS fell from $0.11 to $0.10, adjusted EPS grew from $0.08 to $0.10, which topped the Street analysts' estimated by a penny.

Wendy's Revenues fell 21.8 percent from $489.5 million to $382.7 million in the second quarter of 2016. The drop was due to fewer Company-operated restaurants in the most recent second quarter than the previous year period. However, it topped analysts' predictions of $367.56 million.

President and CEO, Todd Penegor, said, "The North America system has now recorded 14 consecutive quarters of positive same-restaurant sales, which demonstrates the long-term strength and relevance of our brand."

Going forward, Wendy's boosted its adjusted EPS forecast from $0.38-$0.40 to $0.39-$0.40 in the fiscal year 2016. Analysts' are looking for an EPS of $0.39. The company also guided same-restaurant sales growth of about 1-2 percent for the North America system.

In the pre-market trading, the stock shed $0.34, or 3.34 percent, to $9.85.