Wendy's (WEN) Tops Q3 EPS by 1c; Announces $150M Stock ASR, Boosted Dividend

November 9, 2016 7:37 AM EST

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Wendy's (NASDAQ: WEN) reported Q3 EPS of $0.11, $0.01 better than the analyst estimate of $0.10. Revenue for the quarter came in at $364 million versus the consensus estimate of $350.35 million.

Same-restaurant sales increased 1.4 percent at North America system restaurants in the third quarter of 2016. On a two-year basis, third-quarter 2016 same-restaurant sales increased 4.5 percent for the North America system.

Capital Allocation Updates:

As part of its previously authorized $1.4 billion share repurchase program, the Company today announced its intent to repurchase $150 million of its common stock in an accelerated share repurchase transaction in the near future. After completion of the anticipated transaction, the Company will have utilized substantially all of its $1.4 billion share repurchase authorization that was approved by the Board of Directors in June 2015.

The Company repurchased 5.3 million shares for $53.1 million in the third quarter at an average price of $10.07 per share. The number of shares outstanding at the end of the third quarter was approximately 258.9 million.

The Company announced today that its Board of Directors has authorized an increase of 0.5 cents per share in its quarterly dividend rate. The Company's new quarterly dividend rate of 6.5 cents per share will be effective with its next dividend payment on December 15, 2016 to shareholders of record as of December 1, 2016.

The Company plans to announce its future capital allocation plans early next year in conjunction with issuing updated guidance.

GUIDANCE:

Wendy's sees FY2016 EPS of $0.40-$0.41, versus prior guidance of $0.39-$0.40 and the consensus of $0.40.

For earnings history and earnings-related data on Wendy's (WEN) click here.



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