Wendy's (NASDAQ:WEN) rose in morning trading after an expanded menu and refurbished restaurants helped the hamburger chain report better-than-expected same-restaurant sales for the third quarter.
Shares gained 5.3% to $9.93 at 9:57 a.m. in New York, expanding this year's rally to 10.4%.
Net income fell 67% to $7.6mln, or $0.03 per share, in the three months ended September 27, from $22.8mln, or $0.06 per share, a year earlier, the Dublin, Ohio-based company said in a statement.
Stripping out items, the company earned $0.09 per share, topping the $0.09 average estimate of 18 analysts polled by Capital IQ.
Revenue fell 6.5% to $465mln as Wendy's had about 150 fewer company-owned restaurants in the quarter.
Analysts had expected revenue of $438mln.
Total same-restaurant sales in North America, the company's biggest market, rose 3.1% in the quarter. Analysts on average had expected a rise of 2.2%, Reuters said, citing Consensus Metrix.
Wendy’s has sought a more stable cash flow and higher profits by selling off its company-owned restaurants to franchisees. The company has also been struggling to identify the right price points to attract cost-conscious consumers.
Looking ahead, Wendy's said its full-year profit would be toward "the high end" of its previously issued range of $0.31-$0.33 per share.
Wendy's said its chief financial officer, Todd Penegor, would succeed outgoing chief executive officer Emil Brolick after a transition period that will begin in the first quarter of 2016.