DUBLIN, Ohio (AP) — The Wendy's Co. returned to a first-quarter profit as it recorded a large gain on the sale of an investment.
The casual dining chain reported net income of $12.4 million, or 3 cents per share for the period ended April 1. That compares with a loss of $1.4 million, or breakeven results, a year ago.
Excluding items, earnings were 1 cent per share. Analysts expected earnings of 3 cents per share.
Revenue rose 2 percent to $593.2 million. That missed Wall Street's estimate of $608.1 million.
Its shares fell 22 cents, or 4.5 percent, to $4.65 in premarket trading.
Company-run restaurant margin fell due to increased commodity costs, particularly for fresh beef.
The Dublin, Ohio company cut its 2012 earnings forecast mostly because of weaker-than-expected sales and the company-run restaurant margin.