DUBLIN, Ohio (AP) — Wendy's reported a sharply higher profit for its first quarter on Thursday as the hamburger chain saw lower costs and an improvement in sales.
The results beat Wall Street estimates, and its stock rose nearly 6 percent higher in premarket trading.
Sales at established company-owned restaurants climbed 1.3 percent as a result of successful product promotions and improved traffic at remodeled locations, Wendy's said.
At franchised locations, the figure rose 0.6 percent.
Wendy's Co., based in Dublin, Ohio, attributed the stronger performance at its company-run locations to the higher number of remodeled stores, which the company has been pushing aggressively as a way to position itself as a more premium fast-food chain.
CEO Emil Brolick said the solid performance was particularly rewarding given an extremely rough winter that cut down on foot traffic, on top of already intense competition in the sector.
For the quarter ended March 30, Wendy's earned $46.3 million, or 12 cents per share. That compares with $2.1 million, or 1 cent per share, a year earlier.
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