Patrick T. Fallon/Bloomberg via Getty Images DUBLIN, Ohio — Wendy’s fourth-quarter net income rose 25 percent, bolstered by a drop in expenses.
While earnings topped Wall Street expectations, sales were under some pressure and revenue fell short, sending shares down in premarket trading Thursday.
For the three months ended Dec. 29, the restaurant operator earned $33.1 million, or 8 cents a share. That’s up from $26.4 million, or 7 cents a share, a year ago.
Stripping out impairment charges and other items, earnings were 11 cents a share, or 2 cents better than analyst projections, according to a poll by FactSet.
Costs and expenses declined to $563.5 million from $597.6 million. Interest expense dropped to $13.5 million from $20.8 million.
Revenue fell 6 percent to $592.4 million from $629.9 million, short of Wall Street’s forecast of $593.4 million.
Shares of Wendy’s (WEN) shed 19 cents to $10 before the market open.
Full-year net income grew more than sixfold to $45.5 million, or 11 cents a share, from $7.1 million, or 2 cents a share, in the previous year.
Adjusted earnings were 30 cents a share.
Annual revenue fell 1 percent to $2.49 billion from $2.51 billion.
In North America, sales at company-run restaurants open at least a year rose 1.9 percent.
Wendy’s Co. reaffirmed its forecast for 2014 adjusted earnings between 34 and 36 cents a share. Analysts expect earnings of 33 cents a share.
The company also maintained its long-term outlook for a mid-teens increase in adjusted earnings a share.