Wendy's Raises FY16 Earnings Outlook; Hikes Dividend - Quick Facts

(RTTNews) - While reporting its financial results for the third quarter today, fast food chain Wendy's Co. (WEN) raised its earnings outlook for fiscal 2016 and also raised the quarterly dividend. In addition, the company said it intends to enter into an accelerated share purchase program.

For fiscal 2016, Wendy's increased its outlook for adjusted earnings per share to $0.40 to $0.41 from its previous guidance range of $0.39 to $0.40. This represents an increase of approximately 23 percent compared to the company's 2015 adjusted earnings per share results.

On average, 20 analysts polled by Thomson Reuters expect the company to report earnings of $0.40 per share for the quarter. Analysts' estimates typically exclude special items.

The company now expects full-year same-restaurant sales growth of approximately 1.5 percent for the North America system.

Wedny's 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.

As part of its previously authorized $1.4 billion share repurchase program, Wendy's intends 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 in June 2015.