Wendy's tops expectations, selling restaurants

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Associated Press

Posted on July 23, 2013 at 7:02 AM

Updated Tuesday, Jul 23 at 8:00 AM

NEW YORK (AP) — Wendy's is reporting a quarterly profit that above Wall Street expectations and says it is selling 425 of its restaurants to franchisees.

Companies such as McDonald's typically own a small percentage of their restaurants. This fattens their profit margins by reducing operating costs and lets them rely on fees paid by franchisees.

For the quarter, Wendy's Co. says sales edged up 0.4 percent at restaurants open at least a year.

Wendy's says it earned $12.2 million, or 3 cents per share. That compares with a loss of $5.5 million, or 1 cent per share, a year ago.

Not including one-time items, it earned 8 cents per share, more than the 6 cents per share Wall Street expected.

Revenue rose to $650.5 million, short of the $659.5 million analysts expected.

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