Wendy’s sees profit but cuts forecast

NEW YORK — The Wendy’s Co. on Tuesday reported a first-quarter profit that missed Wall Street expectations and cut its forecast for the year, as the hamburger chain struggled in its revival efforts amid higher costs for fresh beef and weaker-than-expected sales.

Wendy’s said it now expects adjusted earnings from continuing operations in a range of $320 million to $335 million, down from its previous forecast of $335 million to $345 million.

For the period ended April 1, Wendy’s reported net income of $12.4 million, or 3 cents per share, versus a net loss of $1.4 million, or break-even results, a year ago.

Excluding the sale of its investment in skin care company Jurlique International and other one-time items, the company said it earned 1 cent per share. That was lower than the 3 cents per share analysts were expecting, according to Factset.

Wendy’s said margin at its company-run restaurants slipped as a result of higher costs for ingredients.

For the quarter, the company said revenue rose 2 percent to $593.2 million from $582.5 million. That also fell short of Wall Street’s estimate for revenue of $608.1 million.

Its shares fell 20 cents, or 4 percent, to close at $4.67.