Wendys Co (NASDAQ:WEN) shares are falling as the company posted its latest quarterly earnings report.
The company announced that it suffered over the three months because it is refranchising its restaurants. Sales were 0.8% higher year-over-year at established North America restaurants, which was better than the projection of an 0.6% surge.
The quarter — which ended on Jan. 1 — totaled earnings of $28.9 million for Wendy’s, or approximately 11 cents per share, which is lower than the 31 cents per share from the previous year. When adjusted for non-recurring gains, this figure came in at eight cents per share.
Wall Street was expecting adjusted earnings at nine cents per share. Revenue also missed the mark at $309.9 million, which was $2.9 million lower than the consensus estimate.
Annual earnings in fiscal 2016 amounted to $129.6 million, or 49 cents per share. Revenue came in at $1.44 billion.
Wendy’s also announced a share repurchase offering tallying up to $150 million, while also raising its quarterly dividend offering slightly from 6.5 cents to 7 cents per share.
The more positive aspects of the company’s quarter can be attributed to lower prices regarding the restaurant’s produce, poultry, beef and veal, as well as higher minimum wages for employees that have caused the company to raise menu prices.
One of the better offers that Wendy’s had in the period was its ‘4 for $4’ value meal, which included offerings such as the new Grilled Chicken Sandwich.
WEN stock slipped 3.1% Thursday.
