DUBLIN, Ohio (AP) — Wendy’s first-quarter net income spiked on lower costs and a sharp decline in interest expenses.
The hamburger chain’s profit and revenue beat estimates and its stock raced nearly 6 percent higher in premarket trading Thursday.
Wendy’s Co. earned $46.3 million, or 12 cents per share. That compares with $2.1 million, or 1 cent per share, a year earlier.
Total costs and expenses dropped to $434.2 million from $581.2 million. Interest expense fell to $13 million from $21 million.
Removing certain items, earnings were 7 cents per share. Analysts predicted 5 cents per share.
Revenue declined 13 percent to $523.2 million due to the sale of some company-run restaurants, but that was still better than the $502.7 million Wall Street expected.
The Dublin, Ohio company reiterated its 2014 adjusted earnings forecast.