Wendy's cuts costs, 1Q results top Street

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Associated Press

Posted on May 8, 2014 at 5:01 AM

Updated Thursday, May 8 at 5:07 AM

DUBLIN, Ohio (AP) — Wendy's first-quarter net income spiked on lower costs and a sharp decline in interest expenses.

The hamburger chain's profit and revenue beat estimates and its stock raced nearly 6 percent higher in premarket trading Thursday.

Wendy's Co. earned $46.3 million, or 12 cents per share. That compares with $2.1 million, or 1 cent per share, a year earlier.

Total costs and expenses dropped to $434.2 million from $581.2 million. Interest expense fell to $13 million from $21 million.

Removing certain items, earnings were 7 cents per share. Analysts predicted 5 cents per share.

Revenue declined 13 percent to $523.2 million due to the sale of some company-run restaurants, but that was still better than the $502.7 million Wall Street expected.

The Dublin, Ohio company reiterated its 2014 adjusted earnings forecast.

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