Los Angeles, Nov. 5 - Wendy's/Arby's Group Inc, the No. 3 U.S. fast-food chain, reported adjusted quarterly profit in line with analysts' expectations, and its shares rose 3 percent.
"We benefited from lower commodity costs in the third quarter and expect that trend to continue in the fourth quarter," Chief Executive Roland Smith said in a statement.
The company, formed after Arby's owner Triarc bought Wendy's International Inc for just over $2 billion in September, reported third-quarter net income of $14.7 million, or 3 cents a share. Figures for the year-earlier quarter were not comparable due to the timing of the merger.
Excluding after-tax special charges, it earned 6 cents a share, matching analysts' average forecast, according to Thomson Reuters I/B/E/S.
Consolidated revenue was $903.2 million, falling short of the $916.5 million analysts had expected.
System-wide sales at established Wendy's restaurants in North America fell 0.1 percent, dampened by the removal of breakfast from hundreds of restaurants.
Smith said sales of Wendy's Bacon Deluxe Cheeseburger have been encouraging and he believes same-store sales will improve from October.
Arby's North America system-wide same-store sales fell 9 percent.
The chain launched an "everyday value strategy" in October. It traditionally has sold its sandwiches at higher prices than other fast-food chains and is scrambling to compete in an environment where discounting is rampant.
The company's shares were up 13 cents to $4.29 in early trading on the New York Stock Exchange.