August 7, 2018 / 8:20 PM / 14 days ago

Wendy's North America same-restaurant sales top estimates

(Reuters) - U.S. burger chain Wendy’s Co (WEN.O) on Tuesday topped Wall Street targets for sales at established outlets in North America, led by the popularity of its value-menu offerings.

FILE PHOTO A Wendy's fast food restaurant is seen in Los Angeles, California U.S. November 7, 2017. REUTERS/Lucy Nicholson/File Photo

Sales at Wendy’s restaurants in North America open at least for a year rose 1.9 percent in the second quarter of 2018. Analysts on average had expected a 1.29 percent increase, according to Thomson Reuters I/B/E/S.

Wendy’s, like other fast-food chains, has been offering discounts on limited-time items and beverages as well as freshly prepared meals to attract more diners in a fiercely competitive industry.

The burger chain now has a $1 Double Stack cheeseburger and in January it launched a “4 for $4” offer as well as discounted Baconator Fries - promotions that have weighed on its profit margins.

The company reported second-quarter net income of $29.9 million, compared with a loss of $1.9 million a year earlier.

Excluding one-time items, Wendy’s earned 14 cents per share, missing financial analysts’ average estimate of 16 cents, according to Thomson Reuters I/B/E/S.

Overall revenue rose nearly 4 percent to $411 million, topping analysts’ estimates of $407.7 million.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sai Sachin Ravikumar

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