Wendy's Estimates Profit to Beat the Street

Wendy's Co, the second-largest U.S. hamburger chain, estimated adjusted quarterly earnings above analysts' expectations, as expenses fell due to franchising many company-owned outlets.

Wendy's shares rose 10 percent to $9.30 in premarket trading on Monday.

The company estimated net income for the quarter ended Dec. 29 at $25.2 million to $28.7 million, or 6-7 cents per share, compared with $26.4 million, or 7 cents per share, a year earlier.

Wendy's said it estimated earnings in a range as it has not yet completed its tax closing procedures for 2013.

Excluding items, the company earned 10-11 cents per share, compared with 9 cents per share last year.

Total sales fell 6 percent to $592.4 million.

Analysts on an average were expecting Wendy's to report a profit of 6 cents on revenue of $611.3 million for the fourth quarter, according to Thomson Reuters I/B/E/S.