U.S. Markets open in 1 hr 19 mins

Wendy's Q2 Miss, Will Sell Canadian Restaurants to Franchisees


Wendy's shares are in focus on Thursday. The fast food chain missed street expectations and says it is trying to sell all of its restaurants in Canada to franchisees. Second quarter profit came in at 8 cents a share, that's more than double what it earned in the same period a year ago, but a couple cents below estimates. Revenue came in at $523 million, that was a 20% drop from a year earlier, though it is slightly above expectations. Same restaurant sales grew 4% at company operated locations in North America. Franchised locations didn't do as well, growing only 3% compared to last year. Wendy's owns 135 restaurants in Canada and it wants to sell them all to franchisees in order to expand. The company said it will reinvest all sales proceeds to build more restaurants in Canada. Wendy's has been offering both premium and low cost items on the menu and the management believes that is working well. Wendy's says it plans to unveil a few more higher-priced items to balance out their value menu items. TheStreet's Julia Sun reports from New York.