Wendy's Company (NASDAQ:WEN) gained ground Wednesday on reporting reported unaudited results for the second quarter ended June 30, 2019.
The Dublin, Ohio-based restaurant chain revealed that total revenues increased 5.9% to $435.3 million, from $411 million in the prior-year quarter. Operating profit leaped 12.7% to $80.6 million from $71.5 million in the prior-year quarter. Net income registered $32.4 million, compared to $29.9 million, an improvement of 8.4%
A news release out Wednesday said the increase in revenues was primarily driven by higher sales at Company-operated restaurants and an increase in franchise royalty revenue. Higher sales at Company-operated restaurants were the result of an increase in the number of restaurants in operation and positive same-restaurant sales.
The increase in operating profit resulted primarily from an increase in franchise royalty revenue and an increase in net franchise rental income.
The increase in net income resulted primarily from an increase in operating profit, partially offset by a loss on early extinguishment of debt that the Company incurred as part of its debt refinancing in the second quarter of 2019.
CEO Todd Penegor exulted. "We are executing on our plan to accelerate same-restaurant sales in North America and drive global restaurant expansion, fueled by a healthy restaurant economic model.
"Our relentless focus on bringing every element of The Wendy's Way to life by providing food our customers love, friendly service, value, and an inviting atmosphere will continue to drive growth in the future."
Shares picked up 90 cents, or 5%, to $19.00
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