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Wendy's gains after lifting guidance

|About: The Wendy's Company (WEN)|By:, SA News Editor

Wendy's (NASDAQ:WEN) reports North America comparable sales increased 4.4% in Q3 to top the consensus estimate for a 3.8% increase. Wendy's comp in North America came in ahead of the sector average.

International sales rose 9.2% during the quarter.

Restaurant margin improved 50 bps Y/Y to 16.2% of sales during the quarter. The increase in company-operated restaurant margin was primarily the result of pricing actions and positive mix benefits, partially offset by labor rate inflation and higher commodity costs.

Adjusted EBITDA came in at $109.9M vs. $105.4M consensus and a year ago.

Looking ahead, Wendy's expects full-year global sales growth of +3.5% to +4.0% v s. a prior outlook of +3.0% to +4.0% and EPS growth of -1.5% to +1.5% vs. -6.5% to -3.5% prior view and -2.4% consensus.

Shares of Wendy's are up 1.49% premarket to $21.15.

Previously: Wendy's EPS beats by $0.04, beats on revenue (Nov. 6)

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