Wendy’s Company (NASDAQ:WEN) premarket surge on Friday follows a third-quarter earnings beat, driven by stronger execution, resilient international growth and cost discipline.

• WEN stock is volatile on Friday. Watch the momentum here.

Investors also cheered steady guidance, a maintained dividend, and signs that new menu initiatives are resonating with customers.

The company reported third-quarter adjusted earnings per share of 24 cents, beating the analyst consensus estimate of 20 cents.

Quarterly sales of $549.516 million (down 3% year over year) outpaced the Street view of $534.457 million.

The decrease in total revenues resulted primarily from lower advertising funds revenue and lower franchise royalty revenue, partially offset by an increase in franchise fees.

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Global systemwide sales totaled $3.5 billion, reflecting a 2.6% decline due to lower same-restaurant sales in the U.S. segment, partially offset by contributions from net new restaurant openings and same-restaurant sales growth in the International segment.

International systemwide sales climbed 8.6%, with gains reported across every region.

“Comparable sales at Company-operated restaurants outperformed the system by 4% during the third quarter and a renewed focus on execution resulted in the successful launch of our new chicken tenders,” said Ken Cook, Interim CEO. 

U.S. company-operated restaurant margin contracted to 13.1% from 15.6% a year ago, primarily due to commodity inflation, a decline in traffic, and labor rate inflation.

Adjusted EBITDA rose 2.1% to $135.2 million. The increase in adjusted EBITDA was primarily driven by a decrease in the company’s funding of incremental advertising spend, lower general and administrative expense, and higher other operating income.

Wendy’s exited the quarter with cash and equivalents worth $450.512 million.

Dividend

The company announced its regular quarterly cash dividend of 14 cents per share. The dividend is payable on Dec. 15.

Outlook

The firm reaffirmed its 2025 adjusted EPS outlook at 82 cents to 89 cents.

The range compares with the analyst consensus estimate of 86 cents.

WEN Price Action: Wendy’s shares are trading higher by 3.74% to $9.16 at publication on Friday.

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